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Investing.com - Bernstein SocGen Group lowered its price target on Tyson (NYSE:TSN) to $58.00 from $59.00 on Tuesday, while maintaining a Market Perform rating on the stock. The meat processing giant, currently trading at $55.03 and commanding a market cap of $19.6 billion, appears undervalued according to InvestingPro analysis.
The firm cited continued challenges in the cattle cycle and beef profitability as key factors for reducing the target, despite acknowledging Tyson delivered a "solid quarter" with better-than-expected chicken segment profits. The company maintains strong financial health with a current ratio of 1.73, demonstrating solid liquidity to navigate market challenges.
Bernstein SocGen raised its 12-24 month EBITDA estimate for Tyson from $3,694 million to $3,916 million, but simultaneously lowered its forward EV/EBITDA multiple from 7.9x to 7.2x to reflect the ongoing beef market pressures.
The research note highlighted several industry controversies, including potential impacts from New World Screw Worms should they reach the U.S., and questions about whether chicken margins have peaked, though Tyson management believes strong performance could continue if feed costs remain stable.
Bernstein SocGen also noted that the ongoing shift in American diets toward proteins and away from carbohydrates appears to be sustaining performance in Tyson’s Prepared Foods segment over time.
In other recent news, Tyson Foods reported stronger-than-expected earnings for the third quarter of 2025. The company achieved adjusted earnings per share of $0.91, surpassing the forecast of $0.81. Revenue also exceeded expectations, reaching $13.88 billion compared to the anticipated $13.54 billion. This performance marks the fifth consecutive quarter of year-over-year growth in sales, operating income, and earnings per share. Following the earnings report, Piper Sandler maintained its Neutral rating on Tyson Foods with a price target of $58.00. The firm highlighted stronger-than-anticipated chicken segment operating margins as a key driver of the earnings beat. These developments reflect Tyson Foods’ continued financial momentum in recent quarters.
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