Jefferies Cuts Price Target on Bunge (BG) Following Meeting, Much Remains on Track
Tweet
Share
E-mailGet Alerts BG Hot Sheet
Price: $113.69 +0.85%
Rating Summary:
20 Buy, 8 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
20 Buy, 8 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Join SI Premium – FREE
Jefferies is reiterating its Buy rating on shares of Bunge (NYSE: BG) while reducing its price target from $84 to $74 following meeting with Mark Haden, Bunge's Director of Investor Relations.
Management indicated favorable grain merchandising trends continue and its outlook remains favorable. Slightly lower than expected U.S. corn exports are expected to be offset by stronger exports out of Brazil and Argentina.
Oilseed processing margins trends remain largely inline with previous forecasts as U.S. crush margins have seen seasonal improvements and South American and European margins continue to be solid. The firm highlights that Bunge's replanting efforts offers significant visibility into 2012 volumes and EBIT.
The company is still on track to reach $50-$100 million in 2012 Fertilizer EBIT and forecasts early progress in the second half of 2011.
An analyst at Jefferies comments, "Meetings provide us with greater confidence that BG's core Agribusiness segment continues to deliver solid results and that BG has strong visibility into significantly improved 2012 profitability from both the Sugar & Bioenergy and Fertilizer segments. In addition, 13 percent depreciation in the Brazilian Real over the last three weeks provides an unexpected margin tailwind."
For 2011 and 2012, Jefferies is estimating EPS of $6.55 and $7.25. Revenue for the two years is estimated to be $54.3 billion and $57.3 billion.
For more ratings news on Bunge click here and for the rating history of Bunge click here.
Shares of Bunge closed at $56.62 yesterday.
Management indicated favorable grain merchandising trends continue and its outlook remains favorable. Slightly lower than expected U.S. corn exports are expected to be offset by stronger exports out of Brazil and Argentina.
Oilseed processing margins trends remain largely inline with previous forecasts as U.S. crush margins have seen seasonal improvements and South American and European margins continue to be solid. The firm highlights that Bunge's replanting efforts offers significant visibility into 2012 volumes and EBIT.
The company is still on track to reach $50-$100 million in 2012 Fertilizer EBIT and forecasts early progress in the second half of 2011.
An analyst at Jefferies comments, "Meetings provide us with greater confidence that BG's core Agribusiness segment continues to deliver solid results and that BG has strong visibility into significantly improved 2012 profitability from both the Sugar & Bioenergy and Fertilizer segments. In addition, 13 percent depreciation in the Brazilian Real over the last three weeks provides an unexpected margin tailwind."
For 2011 and 2012, Jefferies is estimating EPS of $6.55 and $7.25. Revenue for the two years is estimated to be $54.3 billion and $57.3 billion.
For more ratings news on Bunge click here and for the rating history of Bunge click here.
Shares of Bunge closed at $56.62 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Jefferies upgrades Five Below to Buy, sees path to TJX-like re-rating
- Quanta Services (PWR) PT Raised to $833 at Jefferies
- Jefferies Upgrades Inovio Pharmaceuticals (INO) to Buy
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Jefferies & CoSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
