In a report released on April 24, Ben Kallo from Robert W. Baird reiterated a Hold rating on Bunge (BG – Research Report), with a price target of $105.00.
Ben Kallo’s rating is based on a careful examination of Bunge’s financial performance and forward-looking projections. In his analysis, Kallo acknowledges Bunge’s strong first-quarter results which surpassed both Baird’s and consensus estimates, particularly in terms of adjusted earnings per share. He also notes the company’s reiteration of its adjusted EPS guidance for the full year, which suggests confidence in its business operations, despite not including any potential impact from M&A activities. Kallo’s assessment also takes into account the anticipated balance of performance between the first and second halves of the year, with an implied lower Q2.
Furthermore, Kallo considers the strategic actions Bunge is taking, such as the Viterra combination, which is expected to close in mid-2024 despite some challenges. He points out that the liquidity position of Bunge remains robust, with a strong marketable inventory and a healthy level of net debt. The price target he sets reflects a valuation that weighs the near-term prospects and liquidity against the risks associated with Bunge’s pending merger and geographic challenges. This comprehensive view leads Kallo to a Hold rating, suggesting a neutral stance on Bunge’s stock.
In another report released yesterday, HSBC also downgraded the stock to a Hold with a $105.00 price target.
BG’s price has also changed slightly for the past six months – from $100.720 to $105.790, which is a 5.03% increase.
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Bunge (BG) Company Description:
Bunge Ltd. operates as a holding company, which engages in the supply and transportation of agricultural commodities. It operates through the following segments: Agribusiness, Edible Oil Products, Milling Products, Sugar and Bioenergy and Fertilizer. The Agribusiness segment involves in the purchase, storage, transportation, processing, and sale of agricultural commodities and commodity products. The Edible Oil Products segment includes production and sale of vegetable oils, shortenings, margarines, and mayonnaise. The Milling Products segment consists of production and sale of wheat flours, bakery mixes, corn-based products, and rice. The Sugar and Bioenergy segment comprises manufacture and marketing of sugar and ethanol derived from sugarcane, as well as energy derived from the sugar and ethanol production process. The Fertilizer segment focuses on producing, blending, and distributing fertilizer products for the agricultural industry. The company was founded by Johann Peter Gottlieb Bunge in 1818 and is headquartered in White Plains, NY.
