XP Investimentos updated its projections for Minerva Foods and raised the stock’s price target to R$ 8.40, from R$ 7.90. Although it kept its buy recommendation, the brokerage decided to remove Minerva from its list of top picks, following the strong recent appreciation.
Since XP added Minerva to its favorites and upgraded it to buy, the stock has gained 35%, outperforming the Ibovespa by 22% and Brazil’s protein sector average by 39%. The investment thesis was based on solid momentum, an attractive valuation and strong free-cash-flow generation derived from the integration of assets acquired from Marfrig.
Analysts Leonardo Alencar, Pedro Fonseca and Samuel Isaak state that the short-term catalyst remains in place, with expectations of a strong 4Q25 in terms of earnings and cash generation. However, they consider that much of the upside has already been incorporated into the price, reducing the safety margin. XP maintains a constructive view on Minerva but notes that a potential shift in the Brazilian cattle cycle could moderate the pace of appreciation going forward.
Source: Money Times.
