Hold Rating on Tyson Foods Amidst Strong Chicken Performance and Underperforming Beef Segment

Peter Galbo, an analyst from Bank of America Securities, reiterated the Hold rating on Tyson Foods (TSN – Research Report). The associated price target is $61.00.

Peter Galbo’s rating is based on a combination of factors affecting Tyson Foods’ performance. Despite the company’s better-than-expected earnings in the second quarter, driven by strong results in the Chicken and International segments, the lack of an upward revision in the outlook led to a sell-off in shares. The anticipated pressure on Chicken margins in the second half of the year, due to planned investments, suggests that the segment may have reached its peak performance.
Additionally, the Beef segment continues to underperform, and while there are restructuring efforts aimed at generating significant savings, these initiatives are not expected to have an immediate impact. The company’s decision to maintain its overall outlook without significant changes indicates that improvements in non-Chicken segments are necessary for a more positive stock performance. As a result, Peter Galbo maintains a Hold rating, reflecting the potential for shares to remain within a certain range until further improvements are observed.

According to TipRanks, Galbo is a 2-star analyst with an average return of 0.5% and a 48.03% success rate. Galbo covers the Consumer Defensive sector, focusing on stocks such as General Mills, McCormick & Company, and The Hershey Company.