The JBS refrigerator (BDR: JBSS32) held on Wednesday (25) its first day investor as a company listed in the US, held in New York, where high management and controlling shareholders updated on the company’s strategic priorities, with central growth in growth.
According to Goldman, the JBS administration highlighted opportunities for sustained organic and inorganic growth, as well as the company’s proven history in restructuring, such as Pilgrim’s Pride, Swift, US Pork, Australia and Seara, as well as in marks, including Just Bare, Richmond and Seara.
The Organic Capex for growth, estimated at about $ 1 billion a year over the next five years, exceeded Goldman’s expectations, although it is largely offset by better margins and greater exposure to brand products. Management has shown a commitment to more consistent dividend distribution, potentially reaching an income of average digits to ups.
With an attractive assessment, robust operational execution, geographical diversification and high standard products, solid balance and constant free cash flow, Goldman Sachs sees JBS with the greatest potential for appreciation among its coverage in Brazil, reiterating the purchase recommendation and target price $ 19.50.
Goldman Sachs pointed out that JBS resumed a rapid pace of growth, evolving from a butcher shop in Goiás to a global food in the food industry, with annual sales of $ 78.7 billion. The inclusion of the company in the main US indices should occur from 2026, after increasing the Free Float.
The Goldman team also stressed the acceleration of investments, with Capex between $ 5 and 6 billion from 2025 to 2029, in addition to $ 1 to 1.2 billion annually for mergers and acquisitions, aiming to expand scale and increase exposure to value -added products and own brands. About 15% of sales are prepared food, below 22% of Tyson, but this difference is expected to decrease over the next five years. JBS still stands out for its greater geographical diversification compared to Tyson.
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Regarding the future, JPMorgan stressed that JBS has prepared its balance sheet to capture new growth opportunities, with a predicted Capex between $ 1.0 and 1.2 billion and a return on invested capital (ROIC) expected between 17% and 20%. Dividends should range from $ 0.8 to 1.2 billion per year, while mergers and acquisitions (M&A), although not in Guidance, can be located in the range of $ 1.0 to 1.2 billion per year. These initiatives would lead to revenue compound annual growth between 4% and 6% and EBITDA between 6% and 7% in real terms.
JPMorgan also stressed relevant cases of brand construction, such as the Just Bare portfolio, which has accelerated growth with 10% market share and expressive expansion in households.
About the business model, JPMorgan observed the company’s commitment to financial health, highlighting the consistent generation of free cash flow and the gradual increase of dividends, without a fixed policy, but expecting at least $ 1 billion per year. As for the US listing, the bank commented that this explains the valuation discount on US peers due to limited access to investors, especially passive funds.
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From future perspectives, JPMorgan emphasized the change of habits of new generations, which eat less outside the home and have greater acceptance of frozen foods. The long-term growth strategy involves expanding the operating scale, diversification of the added value products portfolio and its own brands, and improving relationship with key customers. Capex, dividends and possible mergers and acquisitions follow according to the parameters mentioned, with expectation of robust growth in revenue and EBITDA (profit before interest, taxes, depreciation and amortization).
Although BTG maintains more conservative estimates, it recognizes that the listing can boost a repracification of actions due to the entry of passive investors. The institution highlights JBS history of ambitious acquisition cycles, stressing that the company is already the largest in the world in the food sector. The introduction of action classes and the new stock base tend to intensify this aggressive growth profile.
BTG considers that action, once a moment thesis, is now configured as a history of multiple expansion, keeping JBS as its only purchase recommendation in the protein sector, with additional potential coming from inorganic growth. With this, the bank maintains purchase recommendation.
