JBS Shakes Off Scandals: Brazilian Meat Titan Defies Critics With NYSE Listing
Wall Street gets a taste of controversy as JBS—the world''s largest meat processor—doubles down on its US ambitions.
From deforestation to dollar signs
The São Paulo-based giant slashes through ethical concerns like a butcher''s cleaver, pricing its NYSE debut just shy of $10 billion. ESG funds scramble to justify their allocations.
The carnivore''s IPO playbook
No grass-fed PR here: JBS bypasses activist outrage with classic emerging markets math—growth trumps governance every time. Analysts whisper about ''protein sector multiples'' while pension funds load up on shares.
Butcher block to trading block
The listing proves one immutable market truth: capital flows where the margins are thickest. Even as climate reports sizzle with warnings, investors still want their pound of flesh.
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The food giant, which is based in Brazil, has long wanted to list its shares in the U.S., where the company derives half of its annual revenues, and where it has more than 72,000 employees. In fact, JBS is America’s top beef producer and its second-largest producer of poultry and pork despite the fact that it is a foreign company based in Brazil.
Shares of JBS are trading under the ticker “JBS” and opened trading on June 13 at $13.65 a share. The opening trade values the company at roughly $30 billion, ahead of rival Tyson Foods’ (TSN) market cap of about $19.82 billion.
Controversies
JBS’ shareholders voted last month to approve the company’s plan to list its shares both in Sao Paulo, Brazil and New York City. Management has said that a dual stock listing will give the company broader access to investors and more competitive interest rates, helping to finance future growth. The U.S. Securities and Exchange Commission approved JBS’s planned listing on the NYSE in May of this year.
The listing of JBS in America has been accompanied by some controversies as the company has a history of corruption and bribery scandals. Brothers Joesley and Wesley Batista, who are the sons of JBS’ founder, recently were reappointed to the company’s board of directors after serving time in prison on bribery and corruption charges, raising some eyebrows among analysts.
Is JBSAY Stock a Buy?
The Brazilian-listed shares of JBS have a consensus Moderate Buy rating among two Wall Street analysts. That rating is based on two Buy recommendations assigned in the past three months. The average JBSAY price target of $21 implies 45.43% upside from current levels.
