Zacks Investment Research Downgrades BRF (BRFS) to Sell

Zacks Investment Research downgraded shares of BRF (NYSE:BRFS) from a hold rating to a sell rating in a report issued on Wednesday.

According to Zacks, “BRF Brasil Foods SA, formerly Perdigao S.A., is a Brazil-based food company focused on the production and sale of poultry, pork, beef cuts, milk, dairy products, and processed food products. The Company’s products include frozen whole and cut chickens; frozen pork cuts and beef cuts; processed food products, such as marinated frozen whole and cut chickens, roosters (sold under the Chester brand) and turkeys; specialty meats, such as sausages, ham products, bologna, frankfurters, salamis, bacon and other smoked products; frozen processed meats, such as hamburgers, steaks, breaded meat products, kibes and meatballs, and frozen processed vegetarian foods; frozen prepared entrees, such as lasagnas and pizzas, as well as other frozen foods, including vegetables, cheese bread and pies; dairy products, such as cheeses, powdered milk and yogurts; juices, soy milk and soy juices; margarine; milk, and soy meal and refined soy flour, as well as animal feed. “

Several other research analysts have also recently issued reports on BRFS. Santander cut BRF from a buy rating to a hold rating in a research report on Tuesday, November 13th. UBS Group cut BRF from a neutral rating to a sell rating in a research report on Monday, October 1st. ValuEngine cut BRF from a hold rating to a sell rating in a research report on Monday, September 17th. Finally, Goldman Sachs Group raised BRF from a sell rating to a buy rating in a research report on Sunday, September 16th. Three research analysts have rated the stock with a sell rating, two have assigned a hold rating and three have given a buy rating to the company. The stock currently has a consensus rating of Hold and a consensus target price of $7.00.

Shares of NYSE BRFS opened at $5.84 on Wednesday. The company has a current ratio of 1.20, a quick ratio of 0.74 and a debt-to-equity ratio of 1.84. BRF has a 1-year low of $4.65 and a 1-year high of $12.39.

BRF (NYSE:BRFS) last issued its quarterly earnings results on Thursday, November 8th. The company reported ($0.25) earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of ($0.12) by ($0.13). BRF had a negative return on equity of 22.97% and a negative net margin of 10.23%. The company had revenue of $2.23 billion for the quarter, compared to analysts’ expectations of $2.37 billion. Sell-side analysts expect that BRF will post -0.9 earnings per share for the current year.

Several large investors have recently added to or reduced their stakes in the company. Baillie Gifford & Co. boosted its position in shares of BRF by 754.6% during the 3rd quarter. Baillie Gifford & Co. now owns 14,118,723 shares of the company’s stock worth $77,371,000 after acquiring an additional 12,466,627 shares in the last quarter. Wells Fargo & Company MN boosted its position in shares of BRF by 75.7% during the 2nd quarter. Wells Fargo & Company MN now owns 11,642,292 shares of the company’s stock worth $54,486,000 after acquiring an additional 5,015,200 shares in the last quarter. Macquarie Group Ltd. boosted its position in shares of BRF by 2.7% during the 3rd quarter. Macquarie Group Ltd. now owns 9,065,830 shares of the company’s stock worth $49,681,000 after acquiring an additional 235,777 shares in the last quarter. BlackRock Inc. boosted its position in shares of BRF by 15.6% during the 3rd quarter. BlackRock Inc. now owns 3,831,830 shares of the company’s stock worth $20,999,000 after acquiring an additional 518,415 shares in the last quarter. Finally, Russell Investments Group Ltd. boosted its position in shares of BRF by 27.4% during the 3rd quarter. Russell Investments Group Ltd. now owns 2,207,776 shares of the company’s stock worth $12,215,000 after acquiring an additional 475,388 shares in the last quarter. 9.52% of the stock is owned by institutional investors and hedge funds.

BRF Company Profile

BRF SA focuses on raising, producing, and slaughtering poultry and pork for processing, production, and sale of fresh meat, processed products, pasta, sauce, mayonnaise, frozen vegetables, and soybean by-products. Its product portfolio comprises whole chickens and frozen cuts of chicken, turkey, and pork; ham products, bologna, sausages, frankfurters, and other smoked products; hamburgers, breaded meat products, and meatballs; lasagnas, pizzas, cheese breads, pies, and frozen vegetables; margarine, mustard and ketchup, and sauces and mayonnaise; and soy meal and refined soy flour, as well as animal feed.

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