JPMorgan Upgrades Tyson Foods to Overweight After Second Outlook Cut

JPMorgan raised Tyson Foods to Overweight from Neutral with a $63 price target, arguing that the protein producer's depressed valuation already reflects a difficult beef cycle. The shares closed at $52.28 on Monday, up roughly 1% on the session.

The upgrade follows Tyson's second guidance reduction of fiscal 2026. The company trimmed full-year revenue growth expectations to a range of 1.5% to 2.0% and lowered projected adjusted operating income to between $1.85 billion and $2.05 billion. Management has pointed to historically tight cattle supply, which has compressed margins in the beef segment even as chicken and prepared foods have held up better.

Cattle herd rebuilding typically runs on a multi-year cycle, leaving beef processors exposed to elevated input costs until supply normalizes. The bull case rests on other protein lines carrying earnings through the trough rather than on a near-term recovery in beef.