Analyst Thomas Palmer from Citi maintained a Hold rating on Tyson Foods (TSN – Research Report) and keeping the price target at $60.00.
Thomas Palmer has given his Hold rating due to a combination of factors impacting Tyson Foods. Despite a recent earnings beat, the increase was the smallest in their recent streak, and the company’s guidance for the second half of the year suggests weaker performance across all segments compared to the first half. This conservative outlook, coupled with potential risks and planned investments, limits the upside potential for the stock.
Additionally, while Tyson Foods maintained its profit outlook for its Chicken segment, several factors such as limited benefits from rising breast meat prices, increased investments, lower grain savings, and potential export disruptions present challenges. Other segments like Pork and Prepared Foods are also expected to face headwinds, with profits likely to be on the lower end of their respective guidance ranges. These elements contribute to a cautious perspective, justifying the Hold recommendation.
Palmer covers the Consumer Defensive sector, focusing on stocks such as Freshpet, Conagra Brands, and General Mills. According to TipRanks, Palmer has an average return of 1.9% and a 52.04% success rate on recommended stocks.
In another report released yesterday, Bank of America Securities also reiterated a Hold rating on the stock with a $61.00 price target.