Stephens raises Tyson stock price target to $63 from $60

On Tuesday, Stephens analyst Pooran Sharma updated the price target for Tyson Foods , Inc. (NYSE:TSN) to $63, an increase from the previous target of $60, while maintaining an Equal Weight rating on the shares. The adjustment follows Tyson’s first-quarter 2025 adjusted earnings per share (EPS) announcement, which exceeded both Stephens’ and the consensus estimates. Tyson reported an adjusted EPS of $1.14, compared to the anticipated $0.94 by Stephens and $0.90 by the consensus. Furthermore, the company’s adjusted earnings before interest and taxes (EBIT) reached $659 million, surpassing the expected figures of $527 million by Stephens and $516 million by consensus. According to InvestingPro, four analysts have recently revised their earnings estimates upward for the upcoming period, suggesting growing confidence in Tyson’s performance trajectory.

The analyst noted Tyson’s performance was stronger than projected in all business segments except Prepared Foods. The beef segment, in particular, delivered a significant positive surprise despite a difficult environment. Tyson also raised its full-year 2025 guidance, citing improved chicken market fundamentals and stronger overall revenue growth. Although the company continues to face challenges in the beef and pork segments, its focus on operational execution has yielded better-than-expected results. With annual revenue of $53.61 billion and a market capitalization of $20.57 billion, Tyson remains a dominant player in the food products industry. InvestingPro data shows the company maintains strong liquidity with a current ratio of 2.11, though its gross profit margin of 7.88% indicates room for improvement.

The report highlighted that Tyson’s upgraded guidance for the Chicken segment is promising, especially since the company has a neutral view on market conditions for this sector. Despite this optimism, concerns remain regarding the Beef segment, with no immediate indications of herd rebuilding, which could pose ongoing challenges. Consequently, while the analyst has increased the price target to $63, the Equal Weight rating has been reiterated, reflecting a cautious outlook on Tyson’s stock amidst these mixed market conditions. InvestingPro’s Fair Value analysis suggests the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report, which provides deep-dive analysis of Tyson Foods among 1,400+ top US stocks.

In other recent news, Tyson Foods Inc. has been the focus of several analyst adjustments following its first-quarter fiscal year 2025 earnings that surpassed expectations. Piper Sandler revised Tyson’s stock rating from Underweight to Neutral, setting a new price target at $58.00. This upgrade comes on the back of stronger Chicken segment margins that contributed to the positive earnings.

In addition, Citi maintained its Neutral rating on Tyson’s stock but adjusted the price target downward from $63.00 to $61.00. This revision reflects mixed segment performance with increased profitability expected in the Chicken segment, but weaker performance anticipated in the Beef division.

UBS also initiated coverage on Tyson Foods, assigning a Neutral rating with a $62.00 price target. The firm predicts an approximate 8% compound annual growth rate in adjusted operating income for Tyson between 2024-2028, driven by the Chicken and Prepared Foods segments. However, potential challenges in the beef segment are anticipated.

Furthermore, Tyson Foods announced the permanent closure of its meat plant in Emporia, Kansas, resulting in over 800 job losses. This closure is part of a series of operational changes by the company, which have led to significant workforce reductions. These are the recent developments for Tyson Foods Inc.

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