BRF SA’s (BRFS)
turnaround process is going to take years to complete, but management
has made some progress already. Helping matters, a potentially severe
outbreak of African Swine Fever (or ASF) in China has boosted protein
stocks (BRF included) in anticipation of higher protein imports from
that country and less demand for grain in Brazil.
The
impact of the ASF outbreak is unlikely to provide a permanent boost to
BRF, but it should boost revenue, profits, and cash flow at a time when
the company could really use the boost. The shares look more
fully-valued on a near-term basis, but I maintain my longer-term outlook
that a successful turnaround could drive a meaningfully higher price
for more patient investors.
Read the full article here:
Slow Progress At BRF SA, But ASF Is Providing A Boost
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