Barclays Reiterates Overweight Rating on Bunge (BG)

Barclays analyst Benjamin Theurer reiterated an Overweight rating and $115.00 price target on Bunge (NYSE: BG)

The analyst comments "Bunge is set to report results the morning of Wednesday, October 30th with a conference call the same day at 8 am ET. We make no changes to our model ahead of results, remaining OW with a $115 price target. Profit Decline Given Operating Environment: With lower sales, a slow supply environment, and weaker crush margins, we model for profitability contractions YoY. On a consolidated basis, we estimate operating income and EBITDA of $460mn and $574mn – down 21% and 17%, respectively. Margins decline by 65bps YoY on average. On a per-segment basis, in Agribusiness we model for a 32% decline in adj. EBIT and a 130bps margin contraction. Refined & Specialty Oils sees a 19% profitability decline and a 90bps margin decline in our model, while Milling adj. EBIT improves 22%. Finally, in Non-Core, we expect profitability to decline significantly, though we note that these assets have officially been sold off to its JV partner BP as of October 1st. Finally, on the bottom line, better financing and a lower tax rate leads to our EPS estimate of $2.10."

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 $89.78 yesterday.

You May Also Be Interested In

• Senate votes to halt Iran war unless Trump gets approval from Congress
• Constellation Brands (STZ) PT Lowered to $157 at Jefferies
• TOP Financial Group offers 6.4 million shares at $0.45645 each