Analyst Upgrade Highlights 18% Upside in JBS N.V. (JBS)

JBS N.V. (NYSE:JBS) is among the consumer defensive stocks to buy according to analysts. On December 11, Guilherme Palhares from Grupo Santander upgraded JBS N.V. (NYSE:JBS) to ‘Outperform’ from ‘Neutral,’ with a price target of $17, according to TheFly. This reflects potential upside of nearly 18% from the current price.

Later on December 12, Reuters reported the permanent closure of JBS N.V. (NYSE:JBS)’s facility outside Los Angeles. The facility, which prepares beef to sell at U.S. grocery stores, will shut down because of tight cattle supplies, lifting costs for meatpackers. This discontinuation of the Swift Beef Company facility will result in 374 jobs cuts, as reported by the state’s Employment Development Department.

Copyright: auremar / 123RF Stock Photo

Just after ranchers brought the U.S. cattle herd down to the lowest level, beef prices set record highs. What made matters worse was the halt on U.S. imports of Mexican cattle, a step that reduced the supplies further. In light of this tension, U.S. President Donald Trump announced his efforts to lower beef prices for consumers and blamed meatpacking companies for manipulating the market to raise prices.

On the contrary, a company’s spokesperson denied that the closure was due to low cattle supplies, describing the closure as “part of a strategic initiative to optimize its value-added and case-ready business and simplify operations across its network.”

JBS N.V. (NYSE:JBS) is a Netherlands-based protein and food company operating worldwide. Founded in 1953, the company provides beef, poultry, plant-based, and leather products.

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Disclosure: None.