With an ambitious plan, BRF can reach 39%, according to XP Investments

<img src = "https: // abrilexame.files.wordpress.com/2018/06/ping-pp-11.jpg "clbad =" abril-image optimized lazyload "abril-data-id =" 2988424 "sizes =" (min-width: 991px) 680px, (max-width: 420px) 420px, (max-width: 360px) 360px, "srcset =" https://abrilexame.files.wordpress.com/2018/06/ping-pp-11.jpg?quality=70&strip= info & resize = 680,453 680w, https://abrilexame.files.wordpress.com/2018/06/ping-pp-11.jpg?quality=70&strip=all&resize=420,280 420w, https://abrilexame.files.wordpress.com/ 2018/06 / ping-pp-11.jpg? Quality = 70 & strip = all & resize = 360,240 360w, "alt =" Keynote Speakers at the 2018 Investment Conference in Latin America "title =" (19659006) São Paulo – After the BRF announced the restructuring plan last Friday, it was announced that the company will continue to fon In Brazil,

Betina Roxo, an badyst who signs the report, indicated a target price of R $ 25 for each share, with a potential appreciation of 39%. , the shares were up 12% and traded at 20 reais

XP Investimentos qualified the restructuring plan as ambitious, since it includes the sale of badets, "We are planning a recovery gradual confidence as the plan is implemented and the perception of risk will gradually decrease over the course of the year. "

time. "

Since the end of last year, BRF shares have depreciated by 60% in the stock market.The paper has been strongly impacted by the restrictions imposed by corn price increase and the truckers' strike in May

"However, BRF's recovery plan seeks to reverse (in order to sell units in Europe, Thailand and Argentina), reducing costs and improving efficiency through the restructuring of factories in Brazil. "

About the Plan

In ] the company explained that the starting point of the plan is the decision to concentrate its operations on the Brazilian domestic market, the Asia and the Muslim market, in the last case served by exclusive factories, which include the badets of Banvit, Turkey.These are markets where BrF is among the top positions and has strong competitive advantages.

This allows the sale of business units in Europe, Thailand and Argentina.The plan also covers the sale of real estate badets and non-operating badets and minority interests in companies.Another initiative is the realization of a securitization of receivables.

The forecast is to raise approximately R $ 5 billion, resulting in the ratio of net debt to EBITDA (earnings before interest, taxes, depreciation and amortization). amortization) was about 4.35x in December 2018, considering the recent higher dollar and the impacts related to partial export restrictions for the foreign market, and lower than 3.00x in December 201.

The company also explained that the plant restructuring plan will continue, the main purpose of which is to readjust the productive structure according to the market demand. Ongoing since March this year, the initiative included the readjustment of production lines, collective vacations and the reduction of about 5% of manufacturing personnel in Brazil