BRF S.A. settlement could help in negotiations with EU, says BofA

After BRF S.A. announced that it entered into a leniency agreement with the Brazilian federal government to resolve past CarneFraca investigations and agreed to pay a total amount of R$584M, BofA analyst Isabella Simonato said the settlement could help BRF in the negotiations with the EU, which she notes has been closed to BRF products since operation Trapaca, a second phase of Carne Fraca. Simonato maintains a Neutral rating on the shares as she continues to see a challenging scenario for BRF in 2023 and still prefers other names in the sector on a relative basis.