BRF S.A. downgraded to Equal Weight from Overweight at Barclays

Barclays downgraded BRF S.A. (BRFS) to Equal Weight from Overweight with a price target of $3.50, down from $5. Marfrig announced that it has reached a deal to purchase the remaining 47% of outstanding BRF shares and will fully consolidate the company into its operations, the analyst tells investors in a research note. The firm cites merger economics for the downgrade of BRF. The opt-out price of R$19.89 for BRF shares implies a $3.50 price per ADR at current currency rates, providing minimal potential upside given current trading prices, says Barclays.