Investing.com – UBS raised its price target on JBS SA () to $17.50 from $17.00 on Monday while maintaining a Buy rating on the stock. The shares currently trade at $13.98, and according to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment. An InvestingPro Tip notes the company is trading at a low earnings multiple with an EV/EBITDA of 6.86.
The firm cited a brighter outlook for 2027 and particularly 2028 as the basis for the adjustment. UBS analyst Matheus Enfeldt noted that Seara margins have held better than expected in the short term, while Friboi has remained steady, though these gains have been offset by weakness in .
The firm said signs of improvement in US beef operations have begun to emerge. Cattle imports from Mexico are expected to improve supply in 2027, along with initial cow retention, according to the analyst.
UBS expects US beef margins to remain close to 0% next year before delivering healthier contributions in 2028. The firm also pointed to efficiency gains captured by the company.
The analyst said JBS trades at 5% 2027 free cash flow yield, rising to 10% in 2028. The company’s current free cash flow yield stands at 3% based on the last twelve months. “We are Buy rated in JBS seeing that the outlook for 2027, but particularly for 2028, is much brighter,” Enfeldt said. For deeper insights, InvestingPro offers 11 additional exclusive tips and a comprehensive Pro Research Report covering JBS alongside 1,400+ other US equities.
In other recent news, JBS SA has announced a proposal to acquire the remaining 18% of Pilgrim’s Pride Corporation shares it does not already own. The offer involves a stock-for-stock exchange, with JBS offering 2.086 of its Class A shares for each Pilgrim’s Pride share. This proposal values each Pilgrim’s Pride share at $28.49, based on recent closing prices. UBS has reiterated a Buy rating on JBS following this acquisition proposal, maintaining a price target of $17.00. In terms of financial performance, JBS reported record net sales of $24 billion for the second quarter of 2026, although its adjusted earnings per share of $0.20 fell short of analysts’ estimates. The company also experienced a net loss of $102 million during the quarter. Stephens has responded by lowering its price target for JBS to $17 from $18, while still maintaining an Overweight rating. Despite the earnings miss, JBS’s free cash flow improved to a positive $130 million, compared to an outflow the previous year.
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