BRF Is Already Priced For Peak Margins, With Poultry Cycles Peaking

Anthony Lee BRF S.A. (NYSE:BRFS) posted impressive 2Q24 results, with a full margin recovery thanks to improving poultry and pork markets, falling grain prices, and the BRL depreciation. These results have not changed my original thesis on the company: that it was cheap considering the current positive cycle, but not so much when considering the cycleaverage profitability of the company, especially when adding a history of terrible capital allocation decisions. The boost from poultry and swine markets seems ...