BofA Securities cuts Tyson stock price target to $61 from $65

On Tuesday, BofA Securities adjusted its price target on Tyson Foods , Inc. (NYSE:TSN) shares, reducing it to $61.00 from the previous $65.00, while sustaining a Neutral stance on the stock. The revision followed Tyson’s second-quarter fiscal year 2025 adjusted earnings per share (EPS) report, which surpassed both BofA Securities and consensus estimates. Tyson reported an adjusted EPS of $0.92, beating the expected $0.80, driven by stronger operating profits, particularly in the Chicken and International/Other segments. However, the Beef segment underperformed, tempering the overall results. Currently trading at $56.08, with a P/E ratio of 23.69, InvestingPro analysis suggests the stock is undervalued relative to its Fair Value.

Despite Tyson’s better-than-anticipated quarterly performance, the company has chosen to retain its full-year 2025 financial outlook, including adjusted operating profit forecasts for both the total company and individual segments. This decision came as a surprise to some, given the Chicken segment’s significant outperformance in the first half of the fiscal year. The lack of an upward revision in Tyson’s guidance for the Chicken segment led to a decline in the company’s share value. With annual revenue of $53.62B and a solid dividend yield of 3.57%, Tyson remains a prominent player in the Food Products industry. InvestingPro subscribers can access 8 additional key insights about TSN’s financial health and market position.

The analyst pointed out that Tyson’s expectations for the Chicken segment in the second half of the fiscal year suggest a decrease in margins compared to both the first half of 2025 and the second half of 2024. This anticipation aligns with the narrative that the peak for the chicken market may have been reached. Tyson attributed the anticipated margin pressure to a planned investment spend of approximately $100 million, which is expected to be weighted towards the latter half of the year. Nevertheless, the company is optimistic about achieving the higher end of its operating profit guidance for the Chicken segment, which is forecasted to be between $1 billion and $1.3 billion for the year.

While Tyson’s Beef segment continues to struggle and efforts to improve the Prepared Foods segment are underway, the analyst believes that the stock may remain in a holding pattern until there is a significant improvement in the non-Chicken segments of Tyson’s portfolio. This cautious outlook underpins the decision by BofA Securities to maintain a Neutral rating on Tyson shares.

In other recent news, Tyson Foods Inc. reported its second-quarter earnings for 2025, revealing an earnings per share (EPS) of $0.92, which exceeded the forecast of $0.84. However, the company’s revenue slightly missed expectations, coming in at $13.07 billion compared to the projected $13.16 billion. Despite this earnings beat, Tyson did not adjust its full-year guidance, maintaining expectations for sales to be flat or up by 1%, which may have contributed to some investor concerns. Additionally, Tyson plans to invest $100 million in its chicken segment for the year 2025, focusing on value-added products and innovation.

JPMorgan recently revised its price target for Tyson Foods, lowering it from $63 to $61 while maintaining a Neutral rating on the stock. The firm expressed optimism for Tyson’s Chicken segment, forecasting a higher earnings per share (EPS) of $4.04, up from a previous estimate of $3.80, and above the consensus estimate of $3.76. JPMorgan analysts suggest that the third-quarter earnings report could serve as a positive catalyst for Tyson stock if the company decides to raise its guidance.

Tyson Foods has demonstrated robust performance, marking the fourth consecutive quarter of year-over-year growth in sales, adjusted operating income, and EPS. The company continues to focus on operational improvements, particularly in its chicken and prepared foods segments, despite challenges in the beef market. Tyson Foods’ strategic priorities include optimizing operations and expanding its distribution network, which are expected to contribute to future growth.

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