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Investing.com - Piper Sandler maintained its Neutral rating and $58.00 price target on Tyson Foods (NYSE:TSN) in a research note published Monday. According to InvestingPro data, Tyson currently trades at $55.98, near its 52-week low, despite showing signs of being undervalued based on Fair Value analysis. The company has maintained dividend payments for 51 consecutive years, demonstrating remarkable financial stability.
The firm updated its model for Tyson, lowering its fiscal 2025 earnings per share estimate from $3.81 to $3.72 while maintaining its fiscal 2026 estimate of $4.45.
Piper Sandler analyst Michael Lavery cited below-the-line items impacting third-quarter fiscal 2025 results by negative $0.13, partially offset by improved chicken margins adding $0.04, which the firm revised upward by 50 basis points to 7.5%.
The research note highlighted ongoing pressure in Tyson’s beef segment, where consensus estimates remain approximately 100 basis points above Piper Sandler’s projections amid constrained cattle supply and challenging spreads.
A ban on Mexican cattle imports, which typically account for 4-5% of U.S. feed lots, is set to be lifted July 7, though this comes too late to benefit Tyson’s fiscal third quarter 2025 results.
In other recent news, Tyson Foods reported financial results that exceeded profit expectations but maintained its full-year guidance, citing planned investments and an uncertain economic environment. Bernstein analysts adjusted their price target for Tyson to $74, down from $75, while retaining an Outperform rating, highlighting the company’s strong innovation pipeline in the Chicken and Prepared Foods segments. Goldman Sachs initiated coverage on Tyson with a buy rating, pointing to the company’s diversified business model as a factor likely to stabilize earnings volatility over time. The investment bank noted Tyson’s attractive valuation, trading below its long-term average.
In addition, Tyson Foods has expanded its product line with new Wright Brand Premium Sausage Links, available in three flavors, responding to consumer demand for high-quality smoked meats. The company plans a nationwide release of these products in fall 2025. Meanwhile, U.S. pork and poultry plants, including Tyson’s, have regained export access to China, following a notice from Chinese Customs. However, beef plant registrations remain expired, impacting Tyson’s beef export potential.
Analysts from Bernstein SocGen Group reiterated an Outperform rating for Tyson, discussing potential challenges in the beef industry, including export tariffs and high interest rates affecting herd expansion. Tyson’s ongoing strategic investments, particularly in marketing and innovation, are expected to influence its performance in the coming months. Investors are closely watching how these developments will play out amid broader economic uncertainties.
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