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Investing.com - Piper Sandler maintained its Neutral rating and $58.00 price target on Tyson Foods (NYSE:TSN), currently trading at $54.90 and showing signs of undervaluation according to InvestingPro’s Fair Value model, following the company’s fiscal third-quarter 2025 earnings report.
The food processing company reported better-than-expected earnings per share for the quarter, primarily driven by stronger-than-anticipated chicken segment operating margins, according to Piper Sandler’s analysis. With a solid financial health score and an impressive 51-year track record of maintaining dividends, Tyson Foods continues to demonstrate resilience despite challenging market conditions.
Tyson’s beef segment continued to face challenges with negative margins of 2.7%, though cattle herd rebuilding is expected to begin in 2026 with beef and cow slaughter down approximately 30%. The research firm noted that normalized cattle supply likely won’t return until 2028.
The chicken segment shows potential for further improvement, with current margins running 200-300 basis points below 2016-2019 levels when they reached 10-11%. Piper Sandler highlighted Tyson’s improved execution and beneficial product mix shifts.
Following the earnings report, Piper Sandler raised its fiscal 2025 EPS estimate from $3.72 to $3.90, while lowering its fiscal 2026 EPS forecast from $4.45 to $4.20. The broader analyst consensus remains cautiously optimistic, with price targets ranging from $58 to $80. For deeper insights into Tyson Foods’ valuation and growth prospects, including 8 additional exclusive ProTips, check out the comprehensive research report available on InvestingPro.
In other recent news, Tyson Foods Inc. reported impressive financial results for the third quarter of 2025. The company achieved adjusted earnings per share of $0.91, exceeding analyst forecasts of $0.81. Revenue also surpassed expectations, reaching $13.88 billion compared to the projected $13.54 billion. This marks the fifth consecutive quarter in which Tyson Foods has experienced year-over-year growth in sales, operating income, and earnings per share. These results highlight the company’s strong performance in the market. Tyson Foods’ financial success is a key point of interest for investors, as it reflects the company’s ability to consistently deliver beyond market expectations.
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