JBS had a “brilliant” year in 2019, and coronavirus does not scare, says BB Investimentos


Dish prepared with meat from JBS Friboi
Succulent: JBS balance sheet filled BB Investimentos’ eyes (Image: Facebook / Disclosure / JBS Friboi)

O BB Investimentos classified the balance sheet released by JBS (JBSS3) this Wednesday (25), after the market closed. According to the report sent to clients and signed by Luciana Carvalho, there were three highlights.

The first was the increase in the volume of exports of Brazilian and American plants; another was the consistent demand in USA. The third was the continuous diversification of the product mix.

Together, these actions contributed to a 57% increase in net revenue in the last quarter, to R $ 57 billion. The figure was 5% above the BB Investimentos estimate.

The report also assesses the possible impacts of the coronavirus pandemic on JBS ‘business. According to the manager of Banco do Brasil, the crisis should not hinder the company, given its good financial situation.

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“It is fair to mention that JBS ended 2019 with a comfortable financial situation (leverage dropped to 2.16x, compared to 3.18x in 4Q18), with a favorable liquidity condition, which we consider important, given the challenging scenario that wait ahead ”, says the analyst.

The recommendation is to buy the shares, with a target price of R $ 33. The value represents a high potential of 47% over the price at which the shares closed yesterday’s trading session: R $ 22.48. Earlier, XP Investments, O Credit Suisse it’s the BTG Pactual had already praised the company’s performance.

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