08:05 AM EDT, 05/03/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month target by $1 to $41, calculated using a 7.5x EV/EBITDA multiple (was 8.0x) against our 2024 adj-EBITDA estimate of $1,605M (+55% Y/Y), up from $1,509M. We lift our 2024 EPS to $3.53 from $3.21 and 2025's to $3.47 from $3.32. Q1 adj-EBITDA of $372M beat the $343M consensus. Operating margin was a strong 6.1% (7.0% U.S.; 3.6% Europe; 7.7% Mexico). In the U.S., the chicken commodity markets strengthened late in Q1 and has continued thus far in Q2. Despite some traffic/demand concerns across the broader foodservice industry, PPC is benefiting from more chicken products being offered (especially in QSRs) due to the limited availability of beef, as well as high prices for competing proteins. PPC is also seeing operational efficiencies, along with favorable grain/feed costs. Q2 should be strong given normal seasonality, along with improving market fundamentals. We sense PPC might be considering either a special dividend or share repurchase program (cash balance was $871M in Q1 vs. $698M in Q4).