BofA Securities: 'A bear case for margins does not pressure JBS bal. sheet

BofA Securities analyst Isabella Simonato reiterated a Buy rating and $21.00 price target on JBS SA (NYSE: JBS).

The analyst comments "Our sensitivity analysis shows that for each 100bps of EBITDA margin changes at US beef, PPC and Seara change consolidated EBITDA in 2026 by US$285mn, US$185mn and US$99mn, respectively. If we assume trough margins for the three divisions, we believe there is a downside of ~US$900mn to our EBITDA estimate. This would be ~US$200mn below the company’s breakeven EBITDA and imply a Net Debt/EBITDA of 3.4x vs. our current estimate of 2.9x (IFRS‑16). This assumes capex of US$2.4bn in 2026 (in line with guidance), including US$1.3bn for expansion, which can be managed by the company as it keeps clear focus on maintaining its Investment Grade."

For an analyst ratings summary and ratings history on JBS SA click here. For more ratings news on JBS SA click here.

Shares of JBS SA closed at $17.03 yesterday.

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