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On Tuesday, Bernstein analysts increased their price target on shares of Tyson Foods Inc (NYSE:TSN) to $75.00, up from the previous $72.00, while maintaining an Outperform rating on the stock. Currently trading at $57.74, Tyson has seen four analysts revise their earnings upwards for the upcoming period, according to InvestingPro data. The adjustment follows Tyson’s strong performance in the first quarter of 2025, which exceeded expectations and prompted questions about the company’s peak potential, especially within its chicken segment.
The firm’s analysts acknowledged Tyson’s robust quarter, highlighting the strength in chicken margins, which have been bolstered by low corn and soybean meal prices. With a market capitalization of $20.57 billion and a current ratio of 2.11, Tyson’s financial position remains solid, though its gross profit margin stands at 7.88%. Additionally, Tyson’s strategic move towards more value-added products is expected to result in higher margins and reduced volatility. The company has also seen significant improvements in demand planning and forecast accuracy in its chicken operations since early 2023.
Despite the upcoming departure of Wes Morris later this year, whose leadership contributed to the recent improvements, Bernstein analysts appear confident in the sustainability of Tyson’s current business model. InvestingPro analysis suggests the stock is currently undervalued, with additional ProTips highlighting its 51-year streak of dividend payments and strong liquidity position. The firm’s optimism is reflected in the increased price target, which is based on an updated next twelve months (NTM) EBITDA estimate of $4,108 million, up from $3,978 million, while maintaining an 8.5x EBITDA multiple.
The analyst’s commentary underscored the importance of Tyson’s shift towards value-added products and the company’s enhanced demand forecasting as key drivers for the upgraded price target. While the future after Morris’s exit remains uncertain, the present state of the business suggests a positive outlook.
Investors will be watching closely to see if Tyson can maintain its momentum and continue to capitalize on its strategic initiatives in the face of changing leadership and market dynamics. The increase in the price target to $75 from $72 by Bernstein signals a belief in the company’s ability to sustain its strong performance and growth trajectory.
In other recent news, Tyson Foods, Inc. has seen multiple revisions to its stock ratings and price targets from various analysts. Stephens raised the price target for Tyson to $63, following the company’s first-quarter 2025 adjusted earnings per share (EPS) announcement, which exceeded both Stephens’ and consensus estimates. Piper Sandler upgraded Tyson’s stock rating to Neutral and set a new price target of $58, following Tyson’s impressive first-quarter fiscal year 2025 earnings, particularly due to stronger Chicken segment margins. However, Citi analysts reduced their price target to $61, while retaining a Neutral rating on the shares, ahead of the company’s expected fiscal first quarter 2025 earnings report. UBS initiated coverage on Tyson with a Neutral rating and a $62 price target, citing Tyson’s substantial market presence.
In a significant development, Tyson Foods announced plans to permanently close its meat plant in Emporia, Kansas, a move that will affect more than 800 employees. This closure is part of a series of closures by Tyson Foods, which has resulted in the layoff of thousands of workers across the country. These recent developments suggest Tyson Foods is focusing on operational execution and navigating a mixed market environment, as reflected in the analyst ratings and price targets.
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