Bunge (BG) Pullback On Currency Concerns Is Overdone - Credit Suisse

Credit Suisse analyst Robert Moskow reiterated an Outperform rating and $65.00 price target on Bunge (NYSE: BG) after shares pulled back on the news of Argentina’s currency devaluation despite Bunge management saying that the accelerated devaluation over the past week has not materially changed its business conditions in Argentina.

The analyst stated "Farmers in Argentina had been holding onto beans already as a hedge against devaluation, so there is no change in management’s expectations for a season of slow farmer selling. Expectations for a rational year of soybean crushing in Argentina are unchanged. Longer-term, management said that if Argentinian farmers continue to sit on their beans, then margins elsewhere can ultimately improve due to a decline in competition in the export markets. For context, roughly 17% of Bunge’s crush business is in Argentina".

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 $53.36 yesterday.

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