Inflation is evidently weighing on the food space now and for, Piper Sandler, it was reason enough to downgrade both Tyson Foods Inc (NYSE: TSN) and Kellogg Company (NYSE: K) marți.
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.
TSN is expected to report rezultatele sale Q2 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. Stocul a crescut cu 4.0% pe an.
Mesaj Piper Sandler a retrogradat astăzi două companii alimentare a apărut în primul rând pe Invezz.
Source: https://invezz.com/news/2022/05/03/piper-sandler-downgraded-two-food-companies-today/