Outlook Intact as Pilgrim’s Pride Boosts Midwest, Specialty Presence via GNP Purchase; Shares Cheap
We do not plan to change our $28.50 per share fair value estimate for no-moat Pilgrim’s Pride after it announced an agreement to acquire GNP Company, a chicken producer in the Upper Midwest (where Pilgrim’s does not have a large presence), for $350 million, or about 5.2 times EBITDA. The deal is expected to close in first-quarter 2017. The size of the transaction is modest (about 7% of estimated 2017 EBITDA), and so we do not expect to materially change our long-term forecast, which calls for 3....Pilgrims Pride is primarily engaged in the production, processing, marketing and distribution of fresh, frozen chicken products to retailers, distributors and foodservice operators. The company's primary product types are fresh chicken products, prepared chicken products and export chicken products. The company's fresh chicken products consist of refrigerated (nonfrozen) whole or cut-up chicken, either pre-marinated or non-marinated and prepackaged case-ready chicken. The company's case-ready chicken includes various combinations of freshly refrigerated, whole chickens and chicken parts in trays, bags or other consumer packs labeled and priced ready for the retail grocer's fresh meat counter.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
We have operations in 27 countries.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.