According to a report published by Just Food, Brazilian meat processing company JBS has withdrawn its bid to fully acquire U.S.-based poultry firm Pilgrim’s Pride Corp. (NASDAQ: PPC).
JBS, which already holds an 80.2% stake in Pilgrim’s Pride, had offered to acquire the remaining shares in PPC in August last year. It also planned to delist the chicken producer from the Nasdaq stock exchange.
A statement from JBS said, “JBS withdrew its offer after it was unable to come to an agreement with the special committee of the PPC Board of directors regarding the terms of the proposed transaction.”
In August, the Sao Paulo-based company said that the acquisition was to simplify its corporate structure and that of its subsidiaries by “maximizing administrative efficiencies, optimizing revenues and increasing even more its operational and strategic flexibility.”
About Pilgrim’s Pride
Colorado-based Pilgrim’s Pride is engaged in the production, processing, marketing, and distribution of fresh, frozen, and value-added chicken products to retailers, distributors, and foodservice operators.
PPC stock closed 13.7% down on Friday at $24.03.
Last week, Stephens analyst Ben Bienvenu upgraded the rating on the stock to Buy from Hold with a $35 price target (45.7% upside potential).
Additionally, Kenneth Zaslow of BMO Capital maintained a Hold rating on Pilgrim’s Pride with a price target of $28 (16.5% upside potential).
Overall, the stock has a Moderate Buy consensus rating based on 1 Buy and 1 Hold. The average PPC price target of $31.50 implies 31.1% upside potential. Shares have gained 17.8% over the past year.
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Pilgrim’s Pride, as 14.2% of investors on TipRanks increased their exposure to the stock over the past 30 days.
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