Minerva's Shares Rise After Positive Research Report
Shares of Brazilian meat packer, Minerva, rose by 5.2% on Tuesday following a positive research report from analysts at XP Investimentos. As a result, shares reached 11.12 reais ($2.25), while Brazil's benchmark Ibovespa stocks index also saw a 1% increase in early trading. Although Minerva's shares were down 18% from the previous year, analysts at XP believe the company is their top pick in the protein space and is poised for growth due to favorable conditions.
Promising Outlook for Minerva
XP Investimentos said that Minerva should experience benefits in the coming months due to soft cattle prices and a favorable exchange rate. The analysts, Leonardo Alencar and Pedro Fonseca, also mentioned that the cattle supply outlook is better than expected and this positive situation is expected to last until 2025. Additionally, export demand has been underwhelming, resulting in lower beef prices in Brazil. However, this has led to increased consumption and strong margins for Minerva.
Overall, despite recent challenges, Minerva shows promise for future success in the protein industry.
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