Tyson Foods (TSN – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Alexia Burland Howard from Bernstein maintained a Buy rating on the stock and has a $75.00 price target.
Alexia Burland Howard has given his Buy rating due to a combination of factors influencing Tyson Foods’ market position and future potential. The recent easing of drought conditions in the U.S. has led to a decrease in hay prices, making it more cost-effective for ranchers to maintain larger heifer inventories. This situation is expected to positively impact the chicken segment’s profitability as lower beef volumes and higher prices could boost chicken demand.
Additionally, Tyson Foods is showing promising signs in its beef and chicken segments, with the beef EBIT margin expected to improve beyond consensus estimates. Despite the rise in corn prices, the demand for chicken remains strong as consumers turn to it as a more affordable protein option. These dynamics, coupled with the potential medium-term benefits of herd rebuilding, support a positive outlook for Tyson Foods, justifying the Buy rating with a target price of $75.00.