XP names JBS top protein pick with a $20.30 target

XP Investimentos reaffirmed its Buy rating on Brazilian meatpacker JBS on October 7, 2026, naming the company its top pick in the protein sector. The brokerage set a price target of $20.30 per share, projecting an upside potential of 69% relative to its reference price, or 65.81% compared to the previous close.

The upgraded thesis reflects improving expectations for the JBS US Beef division. XP now projects negative EBITDA of $226 million for the unit in 2026, upgraded from a previous forecast of negative $765 million. For 2027, the brokerage expects US Beef EBITDA to turn positive at $385 million, compared to an earlier estimate of negative $41 million. The forecast factors in a US beef export quota of 300,000 metric tons.

XP also raised its EBITDA estimates for JBS Brasil by 6% for 2026 and by 19% for 2027. It lifted its 2026 EBITDA forecast for Seara by 4%, while lowering its projections for Pilgrim's Pride by 15%.

For 2027, XP projects JBS will trade at an enterprise value to EBITDA multiple of 5.5 times, while generating an 8% free cash flow yield and an 8% dividend yield.