Why Pilgrim's Pride Shares Are Surging Today
Portfolio Pulse from Lekha Gupta
Pilgrim's Pride Corp (PPC) has been upgraded to Outperform from Market Perform by BMO Capital Markets analyst Andrew Strelzik, with a price target of $28, up from $26. The upgrade is due to increased investor optimism following the announcement of PPC's acquisition by JBS Food Group. The acquisition is expected to limit the downside related to the softer U.S. chicken margin environment. Lower feed costs and potential improvement in supply/demand are expected to benefit PPC's U.S. chicken margins and drive increased chicken prices.
July 13, 2023 | 4:00 pm
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Pilgrim's Pride Corp (PPC) is expected to benefit from its acquisition by JBS Food Group, lower feed costs, and potential improvement in supply/demand. The stock has been upgraded to Outperform by BMO Capital Markets.
The acquisition by JBS Food Group is expected to limit the downside related to the softer U.S. chicken margin environment. Lower feed costs and potential improvement in supply/demand are expected to benefit PPC's U.S. chicken margins and drive increased chicken prices. This has led to an upgrade in the stock's rating.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100