Strong US Chicken Profits Led to BMO Capital's Target Price Increase on Pilgrim's Pride (PPC)

Pilgrim’s Pride Corporation (NASDAQ:PPC) is one of the 13 Deep Value Stocks to Buy Right Now.

On February 13, BMO Capital increased its target price on Pilgrim’s Pride by 5.0% to $42 (from $40), while keeping its Market Perform call on the stock. This price update came after the company released its Q4 2025 earnings on February 11, which showed adjusted EBITDA of $415 million, beating the street consensus estimate of $388 million.

The beat was driven primarily by US operations. The fresh portfolio segment benefited from continued demand from both consumers and key customers (quick-service restaurants and foodservice), resulting in solid volume growth. The prepared foods segment, meanwhile, benefited from increased market share penetration by Just Bare, which translated into rapid volume growth. Europe operations also contributed to the EBITDA beat, as volume growth in the Fridge Raiders and Rollover brands outpaced the category average.

Mexico had a tough quarter as more meat imports led to lower live commodity prices, affecting PPC’s live commodity segment. The other segments were more resilient and showed more promise. The fresh portfolio segment showed steady volume demand, while the branded and prepared foods segments showed good volume growth relative to last year.

Pilgrim’s Pride Corporation (NASDAQ:PPC) produces, processes, markets, and distributes fresh, frozen, and value-added chicken and pork products to retailers, distributors, and foodservice operators in the US, Europe, and Mexico. The company is based in Greeley, Colorado, and was founded in October 1946 by Lonnie and Aubrey Pilgrim.

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