Piper Jaffray Expects a Strong 2H15 From Bunge Limited (BG) After Meeting with Management; Reiterates Overweight

Piper Jaffray reiterates an Overweight rating and $105.00 price target on Bunge (NYSE: BG) after hosting meetings with management. Analyst Brett Wong believes that the street estimates for 2Q are too high. however, Wong believes that BG is set up to deliver a very strong 2H15.

Wong commented, "After hosting meetings with management this week we continue to believe that BG is well positioned to benefit from the strong expected global crop production this year and the ongoing improvements in the livestock industry driving strong crush margins. Although we believe that 2Q Street estimates are too high as fundamentals have proven difficult recently in origination and with struggling soft seed margins, we believe 2H15 is set up to be very strong as farmers sell more grain & oilseeds across Bunge’s core footprint and crush margins continue to be favorable. Strategic review of the sugar business is ongoing with the possibility of a potential asset sale within the next 6-12 months, which would be a positive catalyst for the stock. We are adjusting our FY15 estimates higher – backend loaded – while our FY16 estimates remain unchanged and management reiterated expectations to earn ~$8.50 of EPS in 2017."

For an analyst ratings summary and ratings history on Bunge click here. For more ratings news on Bunge click here.

Shares of Bunge closed at $92.85 yesterday.

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