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JBS Likely to See Improving Earnings Momentum, Morgan Stanley Says

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JBS (JBS) is likely to see improving earnings momentum, a valuation angle, and free cash flow buffer despite a weak start to the year, Morgan Stanley said in a note Friday.

US Beef cycle remains challenging and Q2 industry margins appear weaker through May, but there are better signs into June and July, according to the note.

The brokerage said it cut its 2026 EBITDA forecast by 7% after Q1 miss, but softer PPC estimates are likely related to temporary headwinds, and not structural issues.

For the company's poultry producer, Morgan Stanley lowered its full-year EBITDA estimate by 9% but expects improvement in Q2 due to favorable seasonality and lower impacts from transient disruptions, according to the note.

Morgan Stanley adjusted its price target to $19 per share from $20.50, while reiterating its overweight rating on the stock.

Price: $13.62, Change: $-0.37, Percent Change: -2.61%

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Applied Materials Visibility Extends Into 2027 Amid Strong Demand Trends, RBC Says

Applied Materials (AMAT) appears well-positioned given its leading position in DRAM and advanced logic, as well as exposure to new technologies such as gate-all-around, backside power delivery and 4F2, RBC Capital Markets said.Fiscal Q3 guidance for revenue and earnings per share of $8.95 billion and $3.36 at the midpoint was well ahead of consensus and RBC estimates, with visibility extending to eight quarters and commentary pointing to 2027 being another strong growth year, according to the note Thursday.RBC lifted its fiscal 2026 EPS estimate to $12.15 from $10.99 and its fiscal 2027 estimate to $15.77 from $13.58.Applied Materials has a strong position in advanced logic and advanced packaging and also benefits from generative AI demand. The transition to GAA has been a core driver, and RBC expects Taiwan Semiconductor's (TSM) adoption of backside power to be a tailwind in the second half of 2026.Management also lifted its longer-term Services growth forecast to mid-teens from low-teens due to the growing installed base and customer adoption of AI-enabled optimization solutions, the brokerage said.RBC maintained an outperform rating on Applied Materials and raised the price target to $520 from $500.Price: $433.00, Change: $-7.56, Percent Change: -1.72%

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