Bradesco Corretora: JBS remains favorite food sector

JBS remains the favorite bet on the stock market for the food sector in the opinion of Bradesco Corretora. According to José Cataldo analyst, the JBSS3 actions continue as the "top pick" and have an upside potential of 42.7% to the end of 2016. "We see fur loan credit insurance ther upside for the company, which has significantly improved its mix products and its balance sheet, "he said.

JBS has in its favor the increase in export data in August - which showed strong results for the beef and poultry industry - beyond the current devaluation of the Brazilian currency against the dollar.

"The actions of JBS are the most benefit from the depre loan credit insurance ciation of the real, since 80% of the company's revenues are denominated in dollars. In addition, the company is hedging transactions to protect 100% of its dollar balance sheet, "he analyzed Cataldo.

Additionally, JBS has several short-term drivers: it is gene loan credit insurance rating cash - which should reduce its net debt - and the IPO potential can JBS Foods can bring an increase of its target price, which is currently estimated at R $ 22 for the end of 2016.

Written by Sergio

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