Brazil’s BRF SA (BRFS)
is only just starting its turnaround process, so investors shouldn’t
expect quick fixes or huge improvements in financial results right away.
Likewise, I wouldn’t get too concerned about near-term challenges like a
currency-driven jump in the debt ratio. Importantly, the two key profit
centers (Brazil and the halal business) both had some positive news and
results should improve in the coming quarters.
I
continue to believe that fair value for BRF shares today is in the $6’s,
but with upside into the double-digits in a couple of years if and when
the company executes on its turnaround strategy. Success is far from
guaranteed, though, and investors need to aware not only of the
company-specific execution risks, but also the commodity and currency
risks that impact this business.
Follow the link to read more:
BRF's Third Quarter Had A Few Positives
No comments:
Post a Comment