Salvator Tiano, an analyst from Bank of America Securities, reiterated the Buy rating on Bunge (BG – Research Report). The associated price target is $126.00.
Salvator Tiano’s Buy rating for Bunge’s stock (ticker BG) is anchored in a projection of sustained high profitability over the coming years, despite a recent downturn in agricultural fundamentals and margin pressures within the crushing and refining segments. Tiano anticipates earnings per share (EPS) growth in 2025 and 2026 relative to 2024, fueled by organic investments and strategic mergers and acquisitions. The expected completion of the CJ Selecta acquisition and other operational expansions, such as the vegetable oil refineries in the Netherlands and India, joint ventures, and a significant investment in an Indiana soybean processing facility, are poised to contribute materially to EPS.
Furthermore, despite some investor concerns around the company’s guidance, Tiano remains optimistic about Bunge’s near-term earnings potential, especially with a strong first quarter forecast that seems to imply overly conservative estimates for the remainder of the year. The valuation of Bunge’s stock also appears attractive to Tiano, trading below the long-term average multiple, and he believes the market has not yet fully recognized the value of the Viterra acquisition. He suggests that the anticipated synergies from this deal could significantly enhance EPS and free cash flow per share, which bolsters his confidence in maintaining a Buy rating with a price objective of $126.00.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $115.00 price target.
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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.
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