UPDATE: Wolfe Research Starts Bunge (BG) at Outperform

August 11, 2022 4:30 PM EDT
Get Alerts BG Hot Sheet
Price: $101.78 +0.59%

Rating Summary:
    18 Buy, 4 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 5 | New: 0
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(Updated - August 12, 2022 5:06 AM EDT)

Wolfe Research analyst Sam Margolin initiates coverage on Bunge (NYSE: BG) with a Outperform rating and a price target of $127.00.

The analyst comments "We are initiating coverage on BG with an Outperform rating and $127 price target. We arrive at our price target by applying a 6% consolidated FCF yield to 2023E, which is in line with its 2015-2019 average. FCF yield is our preferred valuation metric for commodity exposed companies because it conveys capital allocation and reflects upside to shareholder returns. In the case of BG, the FCF attributes of the business are not obvious because of working capital and trade receivables intensity in its operations, so we believe this approach highlights underappreciated business characteristics."

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 $97.85 yesterday.

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