Pilgrims Pride Corp
PPC: XNAS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$66.00 | Bdl | Vlbhhsz |
Pilgrim’s Pride: Reinitiating With No-Moat Rating and $28.50 Valuation; Shares Fairly Valued
We’re reinitiating coverage of meat producer Pilgrim’s Pride with a fair value estimate of $28.50 per share and a no-moat rating. Our fair value estimate implies 13 times price/adjusted earnings and 7 times enterprise value/adjusted EBITDA off our fiscal 2024 estimates. At the current market price, we think shares are fairly valued. Investors looking to get into meat processing should take up Tyson shares, which offer significant risk-adjusted upside.