JBS, the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Isabella Simonato from Bank of America Securities reiterated a Buy rating on the stock and has a $21.00 price target.
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Isabella Simonato has given her Buy rating due to a combination of factors related to JBS’s recent financial disclosures and market positioning. The company has enhanced the comparability of its financial results with US peers like Tyson Foods by adopting US GAAP standards for its EBIT and EBITDA figures, which are now presented in USD terms. This change is expected to facilitate a re-rating of JBS’s stock as it aligns more closely with industry norms.
Furthermore, despite anticipated pressure on US beef margins until the end of 2026, JBS’s overall earnings resilience and strong demand for proteins, particularly in the US, support a positive outlook. The company’s strategic growth through mergers and acquisitions, backed by significant financial resources, and its attractive valuation compared to peers, with a lower EV/EBITDA multiple, further justify the Buy rating. Simonato maintains a price objective of $21, reflecting confidence in JBS’s ability to navigate market challenges and capitalize on growth opportunities.
In another report released on August 15, Truist Financial also maintained a Buy rating on the stock with a $20.00 price target.