Tyson Foods Upgraded to Strong Buy as Analyst Sees Redemption Potential

Barclays's Benjamin Theurer upgraded their rating on Tyson Foods (NYSE: TSN) from Strong Sell to Strong Buy on 2024/04/16. The analyst also raised their price target by 30.2% from $53 to $69.

According to Theurer, despite facing difficulties in recent quarters, Tyson Foods is now in a position to "finally redeem itself." The analyst predicts that the company's U.S. Beef segment will continue to deliver poor results, and the Pork segment will also show little profit. However, Theurer argues that the closure of several Chicken processing plants will help restore profitability in that segment. The analyst also believes that Tyson Foods' Prepared Meals business will remain a stable segment.

Theurer notes that there is "additional growth potential" for the company's Chicken segment and argues that the Prepared Meals business is undervalued. In light of this, Barclays maintains that Tyson Foods is undervalued overall.

As for the sentiment among other analysts, 33.3% of top-rated analysts currently rate TSN as a Strong Buy or Buy, while 66.7% see it as a Hold. No analysts recommend or strongly recommend selling the stock.

Looking at the stock performance, since TSN's last quarterly report on 2023/12/30, the stock price has seen an increase of 8.2%. However, year-over-year, the stock is down 5.4%. It is worth noting that during this period, TSN has trailed behind the S&P 500, which is down 21.7%.

Barclays analyst Benjamin Theurer is ranked in the top 22% out of 4,551 Wall Street analysts by WallStreetZen. The analyst has an average return of 2.3% and a 53.7% win rate. Theurer specializes in the Basic Materials and Industrials sectors, among others.

Tyson Foods Incorporated, founded in 1935 and headquartered in Springdale, AR, is a company that processes live fed cattle and live market hogs. Their offerings include primal and sub-primal meat cuts, case-ready beef and pork, and fully cooked meats. The company also raises and processes chickens into fresh, frozen, and value-added products, as well as supplies poultry breeding stock.

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