Banco Safra revised its projections for Brazil’s leading animal protein companies, cut its target prices for JBS, MBRF and Minerva Foods, and downgraded JBS and MBRF to neutral. Minerva was the only company to retain a buy recommendation despite the reduction in its valuation.
The revision reflects a more challenging outlook for beef margins in the United States and a moderation in expectations for the poultry and pork businesses, Money Times reported.
For JBS, the target price was cut from US$ 22 to US$ 15 per share. Safra believes the slow recovery of the US cattle cycle will continue to limit margin improvement in the beef operation until at least 2028. Although the company’s potential inclusion in US stock indexes following its dual listing could attract new investment flows, the bank believes that factor would not be enough to close the valuation discount relative to its peers.
For MBRF, the target price was reduced from R$ 30.50 to R$ 19 per share. Analysts said weakness in the US beef business will continue to weigh on consolidated results, while leverage equivalent to 3.4 times net debt to Ebitda also limits the stock’s appreciation potential. The bank added that a potential initial public offering of Sadia Halal, expected in 2027, could become a positive catalyst, although still not enough to justify a more optimistic view.
For Minerva Foods, Safra lowered the target price from R$ 8.50 to R$ 5.50 per share but maintained its buy recommendation, considering the company the best positioned to benefit from the global beef shortage and the strength of South American exports. Analysts said that, despite the valuation cut, Minerva continues to offer the most attractive risk-return profile among Brazilian meatpackers.
