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UPDATE: Piper Jaffray Upgrades Bunge on 2H13 Margin Recovery

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In a report published on Wednesday, Piper Jaffray analyst Michael E. Cox upgraded Bunge (NYSE: BG) from Neutral to Overweight and raised the price target on the company from $77 to $82.

In the report, Piper Jaffray stated, "We believe the combination of improving port conditions in Brazil, delays in U.S. planting resulting in a late harvest, and tight channel inventory levels presents a positive soybean crush environment. Much improved growing conditions y/y for sugarcane and favorable Brazilian policy surrounding ethanol should aid in the profit recovery story within the Sugar & Bioenergy segment. Lastly, the closing of the fertilizer asset sales to Yara will bring $750 million in liquidity which we believe will be used to repay debt and/ or repurchase shares. We believe the confluence of these factors will support valuation multiple expansion."

Bunge closed on Tuesday at $70.18.

Latest Ratings for BG

DateFirmActionFromTo
Jul 2015Vertical ResearchInitiates Coverage onBuy
Jul 2015BMO CapitalDowngradesOutperformMarket Perform
Apr 2015Stephens & Co.Initiates Coverage onOverweight

View More Analyst Ratings for BG
View the Latest Analyst Ratings

Posted-In: Michael E. Cox Piper JaffrayAnalyst Color Upgrades Analyst Ratings

 

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