JBS NV Tough Cut, Intact Franchise. Downgrading to Neutral on Weaker Momentum

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JBS NV Tough Cut, Intact Franchise. Downgrading to Neutral on Weaker Momentum

J P M O R G A N Latin America Equity Research

13 May 2026

JBS NV ▼Neutral

Previous: Overweight

Tough Cut, Intact Franchise. Downgrading to Neutral on JBS, JBS US

Price (12 May 26):$15.27

Weaker Momentum ▼Price Target (Dec-26):$18.50

Prior (Dec-26):$20.50

We are downgrading JBS from Overweight to Neutral, reducing our 2026E IFRS LatAm Food & Beverages and

EBITDA by 4% to R$5.76bn, now 6% below consensus. Our Dec-26 price target Agribusiness

is lowered to R$18.5 from R$20.5/share. The rationale for the downgrade is not Lucas Ferreira AC

related to the 1Q26 miss, but rather to our view that industry dynamics - (55-11) 4950-3629

primarily supply-related - have deteriorated significantly compared to our lucas.x.ferreira@jpmorgan.com

initial forecasts, particularly in Beef across all regions and US chicken. We Banco J.P. Morgan S.A.

continue to view JBS as an interesting long-term story: (1) Earnings are near a cycle Larissa Perez

low, (2) the company is investing in promising organic and processed food (55-11) 4950-6400

larissa.perez@jpmchase.com

projects, (3) the stock trades at a 15% discount to Tyson in 2026, and (4) we expect Banco J.P. Morgan S.A.

liquidity to improve over time as JBS joins US-based indices. Despite the weak Froylan Mendez

performance of the shares in today’s trading session, we are downgrading the stock (52-55) 5540-9482

as we await new catalysts to become more constructive, such as: (1) the reopening froylan.mendez@jpmchase.com

of the Mexican border for cattle, (2) clearer signs of U.S. heifer retention and (3) J.P. Morgan Casa de Bolsa, S.A. de C.V., J.P.

Morgan Grupo Financiero

improved big-bird spreads. JBS currently trades at 6.1x 26E EV/EBITDA IFRS