UBS has raised its price target on JBS SA to $17.50 from $17.00, citing a more favorable outlook for 2027 and 2028. The upgrade follows a second-quarter performance marked by record sales of $24 billion but a net loss of $102 million.
The Swiss bank maintained a buy recommendation on the meatpacker, citing expectations of a 5% free cash flow yield in 2027 and 10% in 2028, up from the current trailing twelve-month yield of 3%. UBS analyst Matheus Enfeldt noted that the outlook for 2027 and especially 2028 has become significantly more positive.
JBS’s shares, trading at $13.98, remain below the new target. The company’s valuation remains low relative to earnings, with an enterprise value to EBITDA multiple of 6.86. U.S. beef margins are expected to remain near zero in 2027 before improving in 2028, supported by anticipated cattle supply gains from imports and cow retention.
The analyst’s outlook contrasts with Stephens, which reduced its JBS price target to $17.00 from $18.00. JBS has proposed acquiring the remaining 18% of Pilgrim’s Pride Corporation it does not already own by offering 2.086 of its Class A shares for each Pilgrim’s Pride share, valuing the U.S. poultry unit at $28.49 per share based on recent closing prices.
JBS reported adjusted earnings per share of $0.20 in the second quarter, missing analyst estimates, though free cash flow improved to a positive $130 million from a cash outflow in the prior year. The company operates brands including Seara and Friboi.
