JBS SA, the world’s largest beef producer, rose the most in three weeks as JPMorgan Chase & Co. recommended buying the stock on higher earnings estimates.
The shares advanced 4.4 percent to 6.69 reais at the close of trading in Sao Paulo, the most since March 15. The benchmark Bovespa index gained 0.1 percent.
JPMorgan raised today its recommendation on JBS to the equivalent of buy from hold and increased its year-end price target to 8 reais from 7 reais. JBS’s earnings excluding interest, taxes, depreciation and amortization rose 41 percent to 4.3 billion reais ($2.2 billion) in 2012 from 2011, data compiled by Bloomberg shows.
The financial outlook for JBS in 2013 “remains positive with expected 33 percent Ebitda growth on back of strong Brazilian beef operations and a gradual recovery” in the U.S. beef division, Alan Alanis, an analyst at the investment bank, wrote in a note to clients.