Tyson posted smallest earnings beat in seven quarters, says Citi

Citi analyst Thomas Palmer attributes the post-earnings selloff in shares of Tyson Foods (TSN) to two main items. The earnings beat was Tyson’s smallest in its seven quarter streak of earnings beats, and the company’s messaging on profit in the second half of the year seemed to suggest weaker results for all five reporting segments relative to the first half, the analyst tells investors in a research note. Citi believes that while there may be an element of conservatism in the outlook, there are incremental risk items and planned investments that could limit second half upside. It sees upside potential in the share price, though not enough to be more constructive in its rating. The firm keeps a Neutral on Tyson Foods with a $60 price target