BMO upgrades Pilgrim’s Pride to Outperform on growing set of potential catalysts

BMO Capital analyst Andrew Strelzik upgraded Pilgrim’s Pride to Outperform from Market Perform with a price target of $28, up from $26. The firm sees a growing number of potential catalysts, including “likely heightened investor optimism” that JBS acquires PPC following its proposed U.S. listing and greater probability for lower feed costs to benefit U.S. chicken margins in coming quarters. While the firm lowered its Q2 and Q3 EPS estimates for near-term chicken margin pressures, it believes these pressures are well understood and it is “more willing to lean into the potential” that improving supply/demand drives higher chicken prices.