REAL-TIME GLOBAL RESEARCH
JV Announced: Quite Accretive Valuation + Growth Potential; OW JBS
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M
Idea
August 7, 2026 03:14 PM GMT
JBS | Latin America
Morgan Stanley C.T.V.M. S.A.+
Ricardo L Alves
Equity Analyst
JV Announced: Quite Accretive
Valuation + Growth Potential;
OW JBS
Lucas T Mussi
Research Associate
Henrique Morello
Research Associate
JBS SA (JBS.N, JBS US)
In our view, the JV with Danantara Investment Management
(DIM) should be highly accretive to JBS, implying ~10x EVE
multiple. We like the valuation aspect and think the strategic
angle makes sense (adding exposure to a higher-growth market
with a local partner, while retaining control of the asset).
Reiterate OW on JBS.
Our take: A very accretive transaction for JBS at first glance and with LT growth
potential; reiterate OW. JBS has been historically perceived as a savvy market
consolidator, and we believe today's transaction underscores that perception. Based
on our initial calculations, the deal should be quite accretive to JBS as it values its
JBS Australia division at ~10.5x EV/EBITDA Post-Money (LTM GAAP EBITDA) as DIM
LatAm Food & Beverage | Brazil
Stock Rating
Industry View
Price target
Shr price, close (Aug 6, 2026)
Mkt cap, curr (mm)
52-Week Range
Overweight
No Rating
US$19.00
US$13.69
US$14,622
US$18.65-11.50
Fiscal Year Ending
12/25 12/26e 12/27e 12/28e
EPS (R$)**
Prior EPS (R$)**
P/E
EPS (R$)§
Div yld (%)
10.38
7.6
10.53
12.5
6.63
10.6
6.54
7.3
6.95
10.1
7.32
5.0
11.60
6.0
9.71
8.3
Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare
framework
** = Based on consensus methodology
§ = Consensus data is provided by Refinitiv Estimates
e = Morgan Stanley Research estimates
agreed to pay US$2.5bn for 25% of the JV (importantly, this assumes US$1.5bn in net
cash, so a total EV of US$8.5bn, out of which US$10bn is equity; we note that on
the conference call management said that Australia carries a net cash position
today, but it would be raising an initial US$1bn in debt later on, which should be
more than offset by the US$2.5bn cash inflow). The above-mentioned multiple
represents a ~50% premium to JBS' 2027 trading multiple today (US GAAP). As the
…
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