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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