UPDATE: JPMorgan Upgrades Bunge (BG) to Overweight
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JPMorgan analyst Thomas Palmer upgraded Bunge (NYSE: BG) from Neutral to Overweight with a price target of $130.00 (from $106.00).
The analyst comments "We appreciate that investors might be hesitant to own a company whose EBIT is almost entirely tethered to ag products fundamentals when the industry is potentially in cyclical decline. And we could admittedly be early on this call: Our 2023E and 2024E EPS estimates are $1+ below the Bloomberg consensus, which suggests a worsening EPS outlook to come. From a tactical standpoint, though, we think near-term positive catalysts could come from 2Q22 earnings (we model an earnings beat and see upside to annual guidance) and a rebound in ag products trends (we think the sudden dip in soybean oil could be transient). Plus, in wake of the recent stock price sell-off, we think downside from current levels could be somewhat limited. The shares have historically found downside support at ~1.3x price to book value, or $81 per our model after 2Q22 earnings and $90 at the end of 2023 (versus the current stock price below $85)."
Shares of Bunge closed at $85.85 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Upgrades
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