JPMorgan sizes up global food sector

|By:, SA News Editor

JPMorgan takes a deep dive into the food and beverage sector.

The firm names Ambev (ABEV +0.1%) as its top pick, with second-half 2017 EBITDA seen growing 25% Y/Y. Pricing and commodity costs are seen working in Ambev's favor.

At the opposite end of the spectrum, JP calls Underweight-rated JBS Foods (Pending:JBS) the name to avoid due to headline risks and EBITDA growth pressure.

Food stocks rated at Neutral include BRF (BRFS, OTC:BRFFF), Minerva (OTC:MRVSF, OTCQX:MRVSY), Marfrig (OTCPK:MRRTY, OTC:MRRTF) and M. Dias Branco.

Related ETF: PBJ.

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