BMO Capital initiates JBS stock with outperform rating, $20 target

Investing.com - BMO Capital initiated coverage on JBS SA (NYSE:JBS) with an outperform rating and a $20 price target on Wednesday. The stock, currently trading at $13.87, appears undervalued according to InvestingPro analysis.

The research firm cited the protein producer’s diversified business model across various protein types and geographical regions as a key factor in its positive outlook. With a market capitalization of $15.32 billion, JBS currently trades at an EV/EBITDA multiple of 5.0x and maintains a strong free cash flow yield of 16%. BMO Capital noted that JBS currently trades at a discounted multiple of 5.5-6.0 times its projected 2026 EBITDA.

BMO Capital believes the market underappreciates JBS’s potential for both organic and inorganic growth opportunities, along with its disciplined approach to capital allocation. The firm has published an updated financial model for JBS that transitions to US GAAP accounting standards. InvestingPro subscribers can access 8 additional key insights about JBS’s financial health and growth prospects.

The initiation follows JBS’s recent listing on the New York Stock Exchange, marking a significant milestone for the global meat processing company. The NYSE listing provides JBS with increased visibility among U.S. investors and potentially broader access to capital markets.

BMO Capital also referenced its attendance at JBS’s Investor Day, where the company’s senior management team presented on the strengths of its business model, outlined its long-term growth strategy, and discussed its framework for capital allocation decisions.

In other recent news, JBS SA has garnered attention following its primary listing move to the United States on June 13, 2025. BofA Securities initiated coverage on JBS with a buy rating and a price target of $21.00, highlighting the company’s product and geographic diversification, strong U.S. protein demand, and consistent growth through mergers and acquisitions. Morgan Stanley (NYSE:MS) also maintained an Overweight rating for JBS, slightly adjusting the price target to $21.00 from $21.10 as it transitions coverage to the NYSE-listed shares. The firm emphasized that this price target implies around 50% upside potential and designated JBS as its "Top Pick" in Latin American Food & Beverage. BofA noted JBS’s solid acquisition track record and its potential for future growth, supported by an additional $10 billion in firepower. Morgan Stanley views the current trading dynamics as an opportunity for investors, despite recent stock performance. Both analyst firms underscore JBS’s attractive valuation and market position. These developments reflect the evolving investment landscape for JBS as it expands its presence in the U.S. market.

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