Loading...
Back to narrative

PPC: Future Tariff Relief And Earnings Outlook Will Support Share Upside

Restructuring And Partnerships Will Improve Efficiency In Cement Operations

PPC logo
PPC
AnalystConsensusTarget
Not Invested
Published 24 Feb 2025

Update shared on 13 Dec 2025

Previous
n/a
n/a
AnalystConsensusTarget's Fair Value
n/a
Loading
1Y
6.5%
7D
-4.2%

Analysts have modestly raised their price target on PPC to reflect a slightly higher valuation multiple. The new target is now approximately in line with the prior fair value of about 6.8 dollars per share, supported by expectations of steady revenue growth and stable profit margins.

What's in the News

  • U.S. administration preparing to cut tariffs on imported beef and other food staples, a move that could lower Pilgrim's Pride's input costs and support margins if savings are not fully passed through to customers (Bloomberg)
  • PPC issues new earnings guidance for the six months ending September 30, 2025, projecting EPS of 23.50 cents to 25.75 cents, up 8.3% to 18.7% from the prior year period and signaling confidence in profit growth despite volatile commodity markets (Company guidance)
  • Improved EPS outlook suggests potential for stronger cash generation and balance sheet flexibility, which could support further investment in operational efficiency and shareholder returns if execution stays on track (Company guidance)

Valuation Changes

  • Fair Value is unchanged at 6.8 dollars per share, indicating that the modestly higher multiple does not materially alter the overall valuation anchor.
  • The Discount Rate has risen slightly from 18.69 percent to about 18.71 percent, reflecting a marginally higher required return for equity holders.
  • Revenue Growth is effectively unchanged at roughly 11.67 percent, suggesting no material shift in long term top line expectations.
  • The Net Profit Margin is effectively unchanged at about 13.20 percent, indicating stable assumptions for long term profitability.
  • The Future P/E has risen slightly from 7.91x to about 7.91x on a rounded basis, implying a very small increase in the valuation multiple applied to future earnings.

Have other thoughts on PPC?

Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.

Create Narrative

Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.