JPMorgan Chase & Co. Cuts JBS (NYSE:JBS) Price Target to $17.50

Key Points

• JPMorgan lowered JBS’s price target from $18.00 to $17.50 but maintained an “overweight” rating, implying approximately 32.8% upside from the previous close. Analysts overall retain a “Buy” consensus with an average target of $18.67.
• JBS shares rose 1.2% to $13.18, despite the company’s latest quarterly results missing expectations: EPS was $0.20 versus the $0.32 consensus. Revenue increased 13.8% year over year to $23.9 billion, but the net margin was just 1.22%.
• Recent developments include a planned $30 million modernization of the company’s Pennsylvania beef facility and a reported $3.54 billion agreement with Indonesia’s sovereign wealth fund, while leadership changes and weak earnings remain key investor considerations.

JBS (NYSE:JBS - Get Free Report) had its target price cut by equities research analysts at JPMorgan Chase & Co. from $18.00 to $17.50 in a report issued on Wednesday,Benzinga reports. The firm currently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s price objective suggests a potential upside of 32.83% from the company's previous close.

A number of other analysts have also recently weighed in on the stock. Zacks Research raised shares of JBS from a "strong sell" rating to a "hold" rating in a report on Monday, July 13th. Weiss Ratings downgraded shares of JBS from a "hold (c)" rating to a "hold (c-)" rating in a research report on Wednesday, July 29th. UBS Group set a $17.00 price target on shares of JBS in a research note on Tuesday, May 19th. Wall Street Zen raised JBS from a "sell" rating to a "hold" rating in a report on Sunday, August 2nd. Finally, Barclays reduced their target price on JBS from $21.00 to $20.00 and set an "overweight" rating for the company in a report on Thursday, July 16th. Two investment analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Buy" and a consensus price target of $18.67.

JBS Stock Up 1.2%

JBS stock traded up $0.15 during trading on Wednesday, reaching $13.18. The stock had a trading volume of 692,136 shares, compared to its average volume of 5,759,300. JBS has a 52-week low of $11.49 and a 52-week high of $18.65. The business has a 50 day moving average price of $12.48 and a 200 day moving average price of $14.64. The company has a quick ratio of 0.77, a current ratio of 1.50 and a debt-to-equity ratio of 2.42. The stock has a market cap of $10.22 billion, a PE ratio of 12.90, a P/E/G ratio of 0.81 and a beta of -1.65.

JBS (NYSE:JBS - Get Free Report) last released its quarterly earnings data on Monday, August 10th. The company reported $0.20 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.32 by ($0.12). The firm had revenue of $23.90 billion for the quarter. JBS had a return on equity of 11.90% and a net margin of 1.22%.JBS's revenue was up 13.8% compared to the same quarter last year. On average, analysts predict that JBS will post 1.46 EPS for the current year.

Institutional Trading of JBS

Hedge funds have recently modified their holdings of the business. Mitsubishi UFJ Asset Management Co. Ltd. grew its stake in shares of JBS by 34.8% in the 4th quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 455,300 shares of the company's stock worth $6,456,000 after purchasing an additional 117,500 shares during the last quarter. Spectrum Strategic Capital Management LLC bought a new stake in JBS during the fourth quarter worth approximately $1,204,000. Robeco Institutional Asset Management B.V. increased its holdings in shares of JBS by 714.9% in the fourth quarter. Robeco Institutional Asset Management B.V. now owns 442,794 shares of the company's stock valued at $6,385,000 after buying an additional 388,460 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its position in shares of JBS by 117.1% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 7,687,775 shares of the company's stock valued at $138,072,000 after acquiring an additional 4,147,304 shares during the last quarter. Finally, Davis Selected Advisers bought a new stake in shares of JBS during the 4th quarter worth $170,945,000.

Key Stories Impacting JBS

Here are the key news stories impacting JBS this week:

• Positive Sentiment: JBS USA plans to invest approximately $30 million to modernize its Souderton, Pennsylvania, beef facility and convert it into a value-added operation. The project is expected to preserve about 400 jobs and could improve the plant’s product mix and profitability. JBS USA Saves 400 Souderton Jobs with $30 Million Value-Added Plant Transition
• Positive Sentiment: Analysts continue to highlight JBS as an attractively valued stock with earnings momentum and potential upside, providing a positive counterpoint to weakness in crowded artificial-intelligence investments. 3 Overlooked Stocks Analysts Still Like as AI Trades Get Crowded
• Neutral Sentiment: JBS named Wesley Batista Filho as global chief executive officer, while former CEO Gilberto Tomazoni is expected to become vice chairman. The appointment restores leadership to the Batista family and may bring continuity, but investors are evaluating the governance implications and the new CEO’s ability to execute. JBS names Wesley Batista Filho new global CEO
• Positive Sentiment: The company reached a reported $3.54 billion agreement with Indonesia’s sovereign wealth fund, potentially expanding its strategic and financial resources. Details on the transaction’s financial impact remain limited. JBS strikes deal with Indonesian sovereign wealth fund
• Negative Sentiment: Second-quarter results were the primary drag: JBS reported revenue of $23.90 billion, up 13.8% year over year, but earnings fell well short of the $0.32-per-share consensus. Reports characterized the quarter as a surprise loss or approximately $0.20 per share in earnings, versus $0.53 a year earlier. The weak bottom-line performance, combined with a net margin of only 1.22%, is fueling the selloff despite strong sales growth. JBS Reports Q2 Loss, Beats Revenue Estimates

About JBS

JBS SA is a global leader in the production and processing of meat products, with a focus on beef, pork and poultry. Headquartered in São Paulo, Brazil, the company operates through an extensive network of owned facilities and partnerships that span the Americas, Europe and the Asia-Pacific region. JBS supplies fresh, frozen and value-added protein solutions for retail, foodservice and industrial customers, and is active across the entire supply chain—from livestock procurement and feed production to slaughtering, processing, packaging and distribution.

Founded in 1953 by José Batista Sobrinho in Anápolis, Goiás, JBS began as a small slaughterhouse and expanded rapidly through strategic acquisitions and organic growth.

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