The decision by Minerva Foods to resume dividend payments, after two years without distributing profits, marks the beginning of a new phase for the company, supported by a “clear deleveraging path,” according to analysts at Morgan Stanley. According to the bank, once fourth-quarter results are released — usually between February and March — the company could still announce additional payouts.
In its estimates, Morgan Stanley projects that Minerva will distribute dividends equivalent to 10% of its market value in 2026. “We remain comfortable with this dividend yield assumption,” analysts said, highlighting stronger cash generation and a sustained improvement in the company’s financial profile.
Last week, Minerva announced the payment of R$ 162 million in interim dividends, the maximum amount possible considering the capital reserves reported in its balance sheet as of the end of September.
The bank reiterated its buy recommendation, with a target price of R$ 10 per share, implying upside potential of more than 60% over 12 months.
In the market, Minerva shares posted a slight gain on the B3 on the first trading day following the dividend announcement. The company currently has a market valuation close to R$ 6.0 billion, and year to date its shares are up around 35%.
Source: TheAgriBiz
