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UPDATE: JPMorgan Upgrades Bunge (BG) to Overweight

July 7, 2022 7:35 AM EDT
Get Alerts BG Hot Sheet
Price: $94.83 -4.15%

Rating Summary:
    18 Buy, 4 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 2 | Down: 23 | New: 24
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(Updated - July 7, 2022 7:36 AM EDT)

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)."

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 $85.85 yesterday.


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