{"id":332271,"date":"2025-04-22T00:08:00","date_gmt":"2025-04-21T16:08:00","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=332271"},"modified":"2025-04-21T23:29:59","modified_gmt":"2025-04-21T15:29:59","slug":"stock-in-focus-jollibee-foods-corp-jfc-22-april-2025-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-jollibee-foods-corp-jfc-22-april-2025-by-ap-securities\/","title":{"rendered":"Stock in Focus: Jollibee Foods Corp. (JFC) – 22 April 2025 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>JFC<\/td><\/tr>
Company Name<\/strong><\/td>Jollibee Foods Corp. <\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>22 April 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 335.28<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

Seeing as the US market only makes up a small percentage of EBITDA contributions, we are more optimistic about PH consumer spending being the driver for JFC\u2019s topline growth. However, we still recognize the possibility of the market\u2019s negative sentiment which can affect JFC\u2019s current prices if the tariff war continues to heat up. Despite this, we maintain our BUY rating on JFC with a TP of P335.28\/share albeit our BUY rating this time comes with a more cautious tone.<\/p>\n\n\n\n

<\/div>\n\n\n\n

Analysis and Opinion<\/h2>\n\n\n\n

Concerns on indirect impact of tariffs<\/strong><\/p>\n\n\n\n

In a recent Bloomberg Intelligence report, the 15 largest Philippine stocks that had foreign revenue exposures were ICT (68.8%), JFC (39.1%), AC (26.5%), and URC (21.5%). Out of these 4 stocks, ICT and JFC had taken the bulk of the market\u2019s sour sentiment as the jolly bee saw a 15.0% drop in stock prices ever since Trump\u2019s \u201cLiberation Day\u201d while Razon\u2019s port giant saw a less exaggerated 10.4% decline.<\/p>\n\n\n\n

JFC sees only \u2018indirect\u2019 tariff impacts<\/strong><\/p>\n\n\n\n

JFC claimed that most of the input costs for its US-based stores were sourced locally, from North America. In 2023, JFC had the highest allocation of procurement budget for local suppliers. Although this is a consolidated representation of all the stores, JFC\u2019s corporate policy is to patronize local suppliers first wherever possible which further helps diversify against risks of tariffs.<\/p>\n\n\n\n

International segment is diverse enough<\/strong><\/p>\n\n\n\n

In addition to indirect impacts, PH market still contributes 65.1% of Global EBITDA while the US makes up only around 7.1% of Global EBITDA. From both larger and smaller scale perspectives, we see JFC\u2019s earnings should remain largely unaffected by tariffs as it sources its raw materials locally in regions where they operate; however, suppliers seeing elevated input costs and consumers reducing discretionary spending are potential indirect impacts from tariffs that JFC face.<\/p>\n\n\n\n

<\/div>\n\n\n\n

Check how many brokers recommend this stock<\/h2>\n\n\n\n
\n
All Stock Rankings<\/a><\/blockquote>