Shares of JBS SA hit a 52-week low of $11.48 in New York trading, extending a steep decline that has seen the Brazilian meat processor's stock shed roughly a quarter of its value over the past year.
The dip came after President Donald Trump signed an executive order permitting ranchers to process their own beef on-site, a move that investors fear could erode the dominance of large integrators like JBS. Despite the sell-off, the stock still offers an 8.4% dividend yield, and proprietary Fair Value models suggest the share may be trading below intrinsic worth with its RSI pointing to oversold territory.
In a separate corporate development, JBS — which already controls about 82% of U.S. poultry maker Pilgrim's Pride Corporation — submitted a non-binding proposal to buy out the remaining 18% stake. The offer calls for exchanging 2.086 JBS Class A shares for every Pilgrim's Pride share outstanding.
UBS reiterated a Buy rating on JBS and raised its price target to $17.50 from $17.00, citing a more favorable earnings outlook for 2027 and 2028. The bank noted that margins at the company's Seara division in Brazil have come in above expectations, partially offsetting some near-term headwinds at Pilgrim's Pride.
Even at the reduced level, JBS shares remain well below the $28.49 implied value of Pilgrim's Pride stock under the proposed exchange ratio, a gap that could add fuel to the debate over whether the market is underpricing the acquirer or whether further weakness lies ahead.
