Brasil Foods (NYSE: BRFS) is a leading meat producer with a majority of its exports going to emerging markets (e.g., Middle East, Asia), but it remains primarily exposed to Brazil (around 60% of sales). It should benefit from favorable demographics and positive economic trends in Brazil, with an emerging middle class and still low per-capita meat consumption. Recent regulatory uncertainties are mostly over, and BRFS is well positioned to capture synergies and regain market share, given its leading position and diversified brand portfolio. In the shorter term, earnings momentum should also be supported by the recently weakened Brazilian real. We have a BUY recommendation on the stock.