Brazilian Meat Giant JBS Lists Shares in New York Despite Controversies

JBS (JBSAY), one of the oldest and largest meat producers in the world, has listed its stock on the New York Stock Exchange.

The food giant, which is based in Brazil, has long wanted to list its shares in the U.S., where the company derives half of its annual revenues, and where it has more than 72,000 employees. In fact, JBS is America’s top beef producer and its second-largest producer of poultry and pork despite the fact that it is a foreign company based in Brazil.

Shares of JBS are trading under the ticker “JBS” in New York and opened on June 13 at $13.65 a share. The opening trade values the company at roughly $30 billion, ahead of rival Tyson Foods’ (TSN) market cap of about $20 billion.

Controversies

JBS’ shareholders voted last month to approve the company’s plan to list its shares both in Sao Paulo, Brazil and New York City. Management has said that a dual stock listing will give the company broader access to investors and more competitive interest rates, helping to finance future growth. The U.S. Securities and Exchange Commission approved JBS’s planned listing on the NYSE in May of this year.

The listing of JBS in America has been accompanied by controversy as the company has a history of corruption and bribery scandals. Brothers Joesley and Wesley Batista, who are sons of JBS’ founder, were recently reappointed to the company’s board of directors after serving time in prison on bribery and corruption charges, raising eyebrows among some analysts.

Is JBSAY Stock a Buy?

The Brazilian-listed shares of JBS have a consensus Moderate Buy rating among two Wall Street analysts. That rating is based on two Buy recommendations assigned in the past three months. The average JBSAY price target of $21 implies 45.43% upside from current levels.

Read more analyst ratings on JBSAY stock