Tyson Foods is primed to bounce back, according to JPMorgan. The investment bank upgraded the chicken and beef processor to overweight from neutral. It lowered its price target on shares to $63 from $65, though that still implies nearly 21% upside from Thursday’s close. “We think emerging Chicken headwinds, mainly from rising feed costs, are well understood and could be partially mitigated by industry production cuts,” analyst Thomas Palmer said Friday in a note to clients. “Beef earnings could finally be on the upswing (from historically depressed levels) aided by a series of emerging tailwinds.” TSN YTD mountain TSN year to date Shares of Tyson have declined nearly 11% year to date. However, Tyson is poised to benefit from several tailwinds, per JPMorgan. Those include a “reduced operational footprint, the gradual resumption of cattle imports from Mexico, and increased domestic cattle supply,” Palmer wrote. “Plus, TSN’s US retail volume is growing, which is not the case for most large US food companies,” he added. JPMorgan’s call goes against consensus on the Street. Of the 16 analysts covering Tyson Foods, 10 have a hold on the stock, while just five have a buy rating on it, LSEG data shows. Shares ticked more than 1% higher in the premarket following the upgrade.
