Pivotal Research Sticks to Its Sell Rating for Tyson Foods (TSN)

By Jason Carr

Pivotal Research analyst Timothy Ramey maintained a Sell rating on Tyson Foods (NYSE: TSN) today and set a price target of $40. The company’s shares opened today at $60, close to its 52-week low of $56.79.

Ramey commented:

“We are increasing our estimate to $5.70 for FY18; previously $5.55 (even while cutting our 4Q estimate). At our estimate, which it the low-end of guidance, EBIT dollars would fall 30.7% in the 4Q and EBIT margin would fall 290 BP to 6.0%. Our FY19 estimate goes to $4.10 ($3.65 previously) and we introduce a FY20 estimate of $3.75. “Short-term headwinds.” Tyson’s commentary on the current position of the business was remarkably sanguine. They acknowledged the low visibility of the outlook for trade and the importance of the export market to maintaining margins. Tyson seems to say there is nothing to see here. Similarly, analyst questions were remarkably tame – no one challenged the notion that margins should stabilize.”

According to TipRanks.com, Ramey is a 5-star analyst with an average return of 13.6% and a 68.8% success rate. Ramey covers the Consumer Goods sector, focusing on stocks such as Constellation Brands Inc, Post Holdings Inc, and Brown-Forman B.

Tyson Foods has an analyst consensus of Moderate Buy, with a price target consensus of $70.78.

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The company has a one-year high of $84.65 and a one-year low of $56.79. Currently, Tyson Foods has an average volume of 2.33M.

Based on the recent corporate insider activity of 71 insiders, corporate insider sentiment is negative on the stock.

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Tyson Foods, Inc. engages in the production of processed food. It operates through the following segments: Chicken, Beef, Pork and Prepared Foods. The Chicken segment involves in domestic operations related to raising and processing live chickens into fresh, frozen, and value-added chicken products, as well as sales from allied products.