Barclays Downgrades BRF S.A. (BRFS) to Equal Weight from Overweight

BRF S.A. (NYSE:BRFS) is one of the best affordable stocks under $5 to invest in. On May 19, Barclays downgraded BRF S.A. (NYSE:BRFS) to Equal Weight from Overweight, bringing the price target down to $3.50 from $5.

A bird’s-eye view of a poultry farm, its white and black feathered chickens sprawled across the farm.

The firm told investors in a research note that Marfrig announced a deal for the purchase of the remaining 47% of outstanding BRFS shares, fully consolidating the company into its operations.

The firm thus cited merger economics as the primary reason behind the downgrade. It stated that the opt-out price of R$19.89 implies a $3.50 price per ADR at current currency rates, which provides minimal potential upside given current trading prices.

BRF S.A. (NYSE:BRFS) produces and distributes fresh and frozen protein foods. The company’s offerings include frozen processed meats, specialty meats, prepared entrees, sliced products, and even products like cream cheese, butter, margarine, sweet specialties, and more. Its operations are divided into the Brazil, International, and Other segments.

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Disclosure: None. This article is originally published at Insider Monkey.