Tyson Foods (TSN) Receives a Sell from Pivotal Research

By Carrie Williams

In a report released today, Timothy Ramey from Pivotal Research maintained a Sell rating on Tyson Foods (TSNResearch Report), with a price target of $50. The company’s shares opened today at $83.14, close to its 52-week high of $86.90.

Ramey wrote:

“We are below that at 6.7%. Chicken sales rose 12% on a 23% rise in (acquired) volume and an 11.4% decline in average price – mostly on the mix of acquired volume. Margins at 7.1% rose 50 BP as EBIT dollars rose 21%. The chicken segment guidance remains “around 6%” down from 7.7% in FY18. We find it striking that the company thinks, and analysts tend to agree, all the risk is to the upside here. Management stated: “There is not going to be a rapid escalation in meat production.” We’ve seen too many chicken cycles to buy into that rosy view.”

According to TipRanks.com, Ramey is a 4-star analyst with an average return of 5.5% and a 53.7% 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 Strong Buy, with a price target consensus of $87.

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Based on Tyson Foods’ latest earnings release for the quarter ending March 31, the company reported a quarterly revenue of $10.43 billion and net profit of $426 million. In comparison, last year the company earned revenue of $10.03 billion and had a net profit of $541 million.

Based on the recent corporate insider activity of 75 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.