Stephens starts ‘global protein powerhouse’ JBS S.A. at Overweight

As previously reported, Stephens initiated coverage of JBS S.A. (JBSAY) with an Overweight rating and $22 price target. A global footprint, multi-protein portfolio, and disciplined capital allocation provide the “global protein powerhouse” with a durable and diversified earnings stream, the analyst tells investors. While U.S. beef fundamentals have been a drag on recent performance, the firm argues that the company’s vertically integrated, geographically balanced business model helps mitigate regional and commodity-specific volatility. The firm believes a potential U.S. listing could serve as “a meaningful catalyst for multiple expansion” given JBS’s strong comparability to U.S. peers like Tyson Foods (TSN), the analyst added.