JPMorgan cuts Tyson stock price target to $61 from $63

On Tuesday, JPMorgan’s analysis of Tyson Foods Inc. (NYSE:TSN) led to a revised price target, now set at $61, a decrease from the previous $63, while the firm maintained a Neutral rating on the shares. According to InvestingPro data, analyst targets for Tyson Foods range from $58 to $80, with the stock currently appearing undervalued based on comprehensive Fair Value analysis. For deeper insights into Tyson’s valuation metrics and growth potential, investors can access the detailed Pro Research Report, available exclusively on InvestingPro. The adjustment follows Tyson’s second-quarter earnings release for fiscal year 2025 and subsequent discussions with the company. Despite Tyson’s performance exceeding expectations, particularly in the Chicken segment, the company did not raise its guidance, which some investors interpreted as a potential sign of weaker second-half performance for the Chicken division.

Tyson’s stock experienced an 8% drop on Monday, in contrast to a 1% decline in the S&P 500 index. This decline was attributed to the company’s earnings guidance remaining unchanged despite the quarterly beat, which disappointed some investors. JPMorgan noted that the stock’s lower price now makes it more attractive and posited that the company’s guidance might be intentionally conservative, taking into account the current economic uncertainties.

The firm also expressed a more optimistic outlook for Tyson’s Chicken segment earnings before interest and taxes (EBIT) for the year, now forecasting an earnings per share (EPS) of $4.04, up from their prior estimate of $3.80. This figure is also higher than the consensus estimate of $3.76, as reported by Consensus Metrix. JPMorgan analysts suggest that the third-quarter earnings report could serve as a positive catalyst for Tyson stock, especially if the company decides to raise its guidance.

In summary, while JPMorgan has slightly lowered Tyson’s price target, the firm’s stance on the stock has become modestly more positive, with anticipation that upcoming quarterly results could prompt a reassessment of the company’s financial outlook for the remainder of the year. InvestingPro analysis indicates a "FAIR" overall financial health score, with particularly strong cash flow metrics. Subscribers can access 10 additional exclusive ProTips and comprehensive financial metrics to make more informed investment decisions.

In other recent news, Tyson Foods Inc. reported its second-quarter earnings for 2025, with earnings per share (EPS) of $0.92, surpassing analyst expectations of $0.84. However, the company’s revenue came in slightly below forecasts at $13.07 billion, compared to the anticipated $13.16 billion. Despite the EPS beat, the revenue miss contributed to a negative market reaction. Tyson Foods maintained its full-year guidance, expecting sales to be flat or increase by 1%, with adjusted operating income projected between $1.9 billion and $2.3 billion. The company plans to invest $100 million in its chicken segment, focusing on value-added products to meet rising protein demand. Analysts from various firms have noted Tyson’s resilience, especially in its chicken and prepared foods segments, despite challenges in the beef market. Additionally, Tyson Foods is optimizing its logistics and distribution infrastructure, aiming for $200 million in annual savings by transitioning to fully automated cold storage facilities. These developments reflect Tyson’s strategic focus on operational excellence and innovation to navigate the evolving market landscape.

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