Senior Credit Analyst - Emerging Markets, EM Spreads

Leandro Gubler

Senior Credit Analyst - Emerging Markets

EM Spreads

Credit

<ul>
<li>We expect the company to encounter challenges in free cash flow generation, which will pressure credit metrics and hinder post-acquisition deleveraging.</li>
<li>The 2033 notes are the only ones within Minerva’s capital structure that do not trade tight to the LatAm BB and EM BB curves. </li>
<li>However, we believe a better entry point for these notes may emerge based on our expectation of a weakening credit profile in the short term.</li>
</ul>


We expect the company to encounter challenges in free cash flow generation, which will pressure credit metrics and hinder post-acquisition deleveraging.
The 2033 notes are the only ones within Minerva’s capital structure that do not trade tight to the LatAm BB and EM BB curves. 
However, we believe a better entry point for these notes may emerge based on our expectation of a weakening credit profile in the short term.


Minerva 3Q24: Acquisitions Keep Uncertainty High

<ul>
<li>We are initiating coverage on Minerva with an Underperform recommendation.</li>
<li>We are cautious about the credit impact of the Marfrig acquisition.</li>
<li>We believe a better entry point into the name may emerge in the future based on our expectation of a weakening credit profile. </li>
</ul>


We are initiating coverage on Minerva with an Underperform recommendation.
We are cautious about the credit impact of the Marfrig acquisition.
We believe a better entry point into the name may emerge in the future based on our expectation of a weakening credit profile. 


Minerva: Balancing an Interesting Credit Story with Acquisition Risks

Brazil

Minerva S.A. is a leading Brazilian food company specializing in the production and sale of fresh beef, leather, derivatives, and the export of live cattle. The company also operates in the meat processing segment, selling its products to over 100 countries across five continents. Minerva S.A. was founded in 1924 and is headquartered in Barretos, São Paulo, Brazil.

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Minerva (BEEF3 BR)

Minerva 3Q24: Acquisitions Keep Uncertainty High

Challenges in free cash flow generation may hinder post-acquisition deleveraging for Minerva, potentially impacting credit metrics and creating a...

Leandro Gubler

Minerva: Balancing an Interesting Credit Story with Acquisition Risks

Initiating coverage on Minerva with Underperform rating due to concerns about credit impact of Marfrig acquisition and expectation of weakening...

Leandro Gubler

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Minerva 3Q24: Acquisitions Keep Uncertainty High

​Challenges in free cash flow generation may hinder post-acquisition deleveraging for Minerva, potentially impacting credit metrics and creating a...

Leandro Gubler

Minerva: Balancing an Interesting Credit Story with Acquisition Risks

​Initiating coverage on Minerva with Underperform rating due to concerns about credit impact of Marfrig acquisition and expectation of weakening...

Leandro Gubler

Challenges in free cash flow generation may hinder post-acquisition deleveraging for Minerva, potentially impacting credit metrics and creating a...

Initiating coverage on Minerva with Underperform rating due to concerns about credit impact of Marfrig acquisition and expectation of weakening...