Analyst more bullish on Tyson Foods

Despite bird flu implications in Tyson Foods’ home state of Arkansas, Wall Street analysts with Stephens Inc. have raised their fiscal second-quarter earnings forecast for the Springdale-based meat giant.

Farha Aslam, analyst with Stephens, updated her Tyson earnings forecast to 72 cents per share, up from 67 cents forecast previously noted. She lifts the forecast based on improved operating climate for poultry and prepared foods with beef and pork also modestly gaining some momentum.

In a note to investors, Aslam predicted Tyson’s chicken sales and profits should benefit from strong demand from foodservice and retail, as well as moderating grain costs. Prepared Foods results should garner support from declining pork and beef prices, as well as good synergy capture from the Hillshire acquisition.

Also weighing in her analysis are heightened expectations for beef exports in the back half of this year. She believes the Avian Influenza hitches are manageable thus far and notes that China could help absorb global increases in red meat production.

She also noted that export demand for U.S. red meat is expected to increase in the second half of 2015.

Shares of Tyson Foods opened lower on Friday trading at $38.11, down 5 cents in the morning session.  For the past 52 weeks the share prices has ranged from $44.24 to $34.90.