On Heels Of Tyson Foods CFO Arrest, Analyst Turns Bearish Ahead Of Earnings

Tyson Foods, Inc. TSN is scheduled to report its fiscal first-quarter earnings next Monday and Needham has already slashed its price target.

The report will come one week after the Springdale, Arkansas-based meat producer's CFO, John R. Tyson, was arrested on a charge of public intoxication and criminal trespassing.

Since the earnings preview in early October, macro factors within the protein complex have deteriorated, according to Bank of America Securities.

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The Analyst: Peter Galbo downgraded the rating for Tyson Foods from Neutral to Underperform, while reducing the price target from $73 to $61.

The Tyson Foods Thesis: Beef fundamentals have continued to worsen, exerting pressure on packer margins, which is likely to carry into 2023 and 2024, Galbo said in the downgrade note.

“Chicken prices have declined meaningfully, impacting commodity chicken margins, to which TSN maintains some exposure,” the analyst further mentioned. “Volatility in Prepared Foods; share losses in foodservice, cost pressures and mgmt. changes suggest performance could slip before it improves."

TSN Price Action: Shares of Tyson Foods had declined by 3.38% to $65.46 at the time of publication on Wednesday.