BofA Securities initiates coverage on JBS stock with buy rating

BofA Securities analyst firm initiated coverage on JBS SA (NYSE:JBS) with a buy rating and a price target of $21.00, implying a potential 49% upside for the world’s largest protein processor. According to InvestingPro data, JBS currently trades at $14.00, with analysis suggesting the stock is undervalued based on its Fair Value assessment.

The coverage follows JBS’s primary listing move to the United States on June 13, 2025, marking a significant shift for the global meat processing company.

BofA’s positive outlook stems from three key factors: the company’s product and geographic diversification that has reduced earnings volatility, strong protein demand particularly in the U.S. market that has maintained high meat prices, and JBS’s consistent growth through mergers and acquisitions.

The research firm highlighted JBS’s "solid track record" in acquisitions and noted the company has an "additional firepower of US$10bn" for future growth opportunities.

BofA also pointed to JBS’s "attractive valuation" as part of its investment thesis, suggesting the current stock price does not fully reflect the company’s market position and growth potential.

In other recent news, JBS SA has made headlines with developments that are important for investors to note. Morgan Stanley (NYSE:MS) has maintained its Overweight rating on JBS while slightly lowering the price target from $21.10 to $21.00. This adjustment comes as JBS transitions to being listed on the New York Stock Exchange. The dual-listing was completed on June 13, with the company’s Brazilian Depositary Receipts starting to trade on Brazil’s B3 exchange on June 9. Morgan Stanley’s revised price target reflects the new number of shares and a translation from Brazilian real to U.S. dollars, without any changes to operational or valuation assumptions. The firm highlights a potential 50% upside, supporting its positive outlook on JBS as a "Top Pick" in Latin American Food & Beverage. Despite recent share weakness attributed to trading flow dynamics, Morgan Stanley views this as an opportunity for investors.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.