Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Bunge Limited Sell-Off 'Largely Unwarranted' - BoFA

Stock Markets Jun 30, 2022 02:58PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters Bunge Limited (BG) Sell-Off 'Largely Unwarranted' - BoFA

By Sam Boughedda

BofA analyst Steve Byrne upgraded Bunge Limited (NYSE:BG) to Buy from Neutral, trimming the firm's price target on the stock to $135 from $140.

Bunge, an agriculture and food business, is down 29% from its April high on broad macro concerns and recently emerging concerns about this agriculture cycle, said Byrne.

"In our view we see little risk to the ag cycle, especially as more and more data points to a sharp reduction in fertilizer applications globally, biofuel standards have not been rolled back as expected, and US weather during planting season was unfavorable – all supporting elevated crop prices," wrote Byrne. "We also like the limited correlation between the global ag cycle and economic cycle."

As a result, BofA views the sell-off in Bunge as "largely unwarranted."

"We see BG as offering a better risk/reward vs ADM on more attractive valuation (especially since BG's stock has underperformed ADM both on a 1-year and ytd basis, as well as since April) and a bigger focus on soft commodities trading/merchandizing and soybean crushing. Both businesses are unlikely to be affected by a recession and should have structural tailwinds for the next few years."

 

Bunge Limited Sell-Off 'Largely Unwarranted' - BoFA
 

Related Articles

European Stock Futures Mixed; Chinese Economy Slows
European Stock Futures Mixed; Chinese Economy Slows By Investing.com - Aug 15, 2022 1

By Peter Nurse  Investing.com - European stock markets are expected to open in a mixed fashion Monday, starting the week on a cautious note amid concerns about slowing global...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email