Piper downgrades Tyson Foods to Underweight on risk across segments

Piper Sandler analyst Michael Lavery last night downgraded Tyson Foods to Underweight from Neutral with a price target of $50, down from $57. The firm sees more downside risk that does not look priced into the shares. Cattle costs are likely get worse before they get better, and Piper there is downside risk to “unusually favorable” beef pricing, the analyst tells investors in a research note. Piper says leading indicators point to downside risk to chicken pricing from increasing market supply, and that Tyson’s boost from major chicken efficiencies in early 2024 “has also largely run its course.”