Bank of America Expects Turnaround to Continue for BRF SA Despite CEO Change

In a report published Friday, Bank of America analyst Fernando Ferreira reiterated a Buy rating and $29.00 price target on

. In the report, Bank of America noted, “BRF announced Mr. Pedro Faria as the new CEO of the company, starting in 2015. This is expected, in our view, as it was previously announced that Mr. Claudio Galeazzi would step down by Dec/14. We believe the transition should be smooth, and do not expect any disruption in the implementation of the BRF-17 plan. Mr. Faria has been the CEO of BRF's international division since Nov/2013 and has been responsible for the successful strategy of focusing on markets with higher margins. He is also a partner at Tarpon, holder of a 10.5% stake at BRF, which should help to further align interests with shareholders.We maintain our Buy rating on BRF.” BRF SA closed on Thursday at $23.28.