UPDATE: Piper Jaffray Upgrades Bunge on 2H13 Margin Recovery
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.
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