Analysts at BTG Pactual Group led by Thiago Duarte upped on
Tuesday the price target for shares of JBS SA, the
world's largest meatpacker, as management is effectively
reducing the Brazilian company's debt levels. Duarte and his
team expect the shares to rise to 8.4 reais by the end of next
year, and kept a "buy" recommendation on them.
JBS is gaining momentum thanks to a better outlook for its
Mercosur division, and despite the challenging prospects facing
meatpackers in the United States amid higher raw materials, BTG
Pactual added. As a result, the analysts cut their 2012 earnings
estimates by 17 percent but increased their earnings before
interest, tax, depreciation and amortization estimates 13
percent and 26 percent for 2012 and 2013, respectively "to
account for JBS's continuing expansion - we see revenues jumping
17% year-on-year and a weaker real," Duarte wrote in a note.