Goldman Sachs initiates Tyson stock with buy rating on diversified model

Published 23/06/2025, 10:46
Goldman Sachs initiates Tyson stock with buy rating on diversified model

Investing.com - Goldman Sachs initiated coverage on Tyson Foods (NYSE:TSN) with a buy rating and set a price target of $67.00 on Monday. Currently trading at $54.41, InvestingPro analysis suggests the stock is undervalued, with shares trading near their 52-week low of $54.01.

The investment bank cited strength in Tyson’s diversified business model as a key factor in its positive outlook, noting this diversification should help reduce earnings volatility over time. The company has demonstrated financial stability through its impressive 51-year track record of maintaining dividend payments, currently offering a 3.68% yield.

Goldman Sachs believes the current cyclical low in beef profitability creates an attractive entry point for patient investors, while strength in the company’s chicken and prepared foods segments is expected to drive near-term upside.

The firm indicated that market concerns regarding Tyson’s beef business are already reflected in the stock price, with consensus estimates currently at low levels.

Goldman Sachs also highlighted Tyson’s attractive valuation, which is trading below its long-term average at 7.6 times next twelve months enterprise value to EBITDA, compared to its 10-year average of 8.0 times.

In other recent news, Tyson Foods reported a stronger-than-expected earnings performance, with adjusted earnings per share surpassing both BofA Securities and consensus estimates. Despite this, the company decided to maintain its full-year financial outlook, including adjusted operating profit forecasts, which some analysts found surprising. Bernstein analysts adjusted Tyson’s price target to $74, citing a cautious outlook due to planned investments and an uncertain economic landscape, while maintaining an Outperform rating. BofA Securities also revised their price target for Tyson to $61, keeping a Neutral stance on the stock. Analysts from Bernstein SocGen Group reiterated their Outperform rating, focusing on the beef industry’s cyclical recovery and potential export challenges.

Additionally, Tyson Foods has expanded its product line with the introduction of Wright Brand Premium Sausage Links, featuring three new flavors. The new sausages are currently available at select retailers, with plans for a nationwide release in fall 2025. Meanwhile, U.S. pork and poultry plants, including those associated with Tyson, have regained export access to China after recent trade discussions. However, beef plant registrations remain expired, affecting Tyson’s beef exports. These developments reflect ongoing strategic moves and market conditions affecting Tyson Foods.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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