Bank of America Securities analyst Peter Galbo has reiterated their neutral stance on TSN stock, giving a Hold rating yesterday.
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Peter Galbo has given his Hold rating due to a combination of factors impacting Tyson Foods. The company’s first quarter results for fiscal year 2025 were strong, particularly in the Chicken segment, and management’s cautious guidance adjustment sets up a positive outlook for the year. However, the potential seasonal weakness in the second quarter, especially in beef and chicken, coupled with concerns over tariffs affecting beef, pork, and chicken, introduces some uncertainties.
Additionally, while Tyson Foods is seeing improvements in operations, the stock is trading near its mid-cycle valuation, which limits the potential for significant upward movement. Challenges remain in the Prepared Foods segment, where growth and profitability have been below expectations due to raw material cost pressures and sub-optimal margins compared to industry peers. These aspects collectively justify maintaining a Hold position on the stock, reflected in the reiterated Neutral rating and a price objective of $65.
In another report released yesterday, HSBC also upgraded the stock to a Hold with a $66.00 price target.