Piper Sandler downgraded two food companies today
Invezz is an independent platform with the goal of helping users achieve financial freedom. In order to fund our work, we partner with advertisers who compensate us for users that Invezz refers to their services. While our reviews and assessments of each product on the site are independent and unbiased, brands may pay to appear higher up our table rankings or place ads in specific areas of the site. The order in which products and services appear on Invezz does not represent an endorsement from us, and please be aware that there may be other platforms available to you than the products and services that appear on our website. Read more about how we make money >
May 3, 2022
Analyst Michael Lavery sees 10% and 8.0% downside in TSN and K, respectively.
Both food companies are set to report quarterly results in the coming days.
Analyst warns Tyson Foods could slide another 10%
In a note this morning, analyst Michael Lavery downgraded Tyson Foods to “underweight” with a price target of $81 that represents a 10% downside from here. Previously, he had a PT of $87 on the stock.
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter, today.
TSN is expected to report its Q2 results next week. Lavery sees inflation a headwind for the Springdale-headquartered company as it could continue to push consumers into cutting back on meat. The analyst wrote:
Over 60% have begun buying less of a grocery category because of inflation, 48% of whom have been cutting back on meat. While TSN has exposure to many parts of the value chain, consumer downtrading would have a negative effect on revenue and margin mix.
Lavery sees downside to $62 in Kellogg Company
In a separate note, the Piper Sandler analyst also downgraded Kellogg Company on Tuesday to “underweight” and said the stock could slide another 8.0% from here to $62 a share.
Lavery agreed that cereal sales weren’t under pressure for now, but said the American multinational hadn’t yet fully recovered from 2021 disruptions. He wrote:
Kellogg lacks better current momentum, following disruptions from its 2021 strike at a time when it looks likely to face accelerated downtrading, which could potentially make it harder to regain share.
Kellogg is scheduled to report its Q1 results on May 5th. The stock is up 4.0% for the year.
68% of retail CFD accounts lose money
Food & Beverage
Stocks & Shares