Bunge stock price target raised to $110 from $95 at BMO Capital

Investing.com - BMO Capital raised its price target on Bunge (NYSE:BG) to $110.00 from $95.00 on Thursday, while maintaining an Outperform rating on the agricultural commodities trader. The stock has shown strong momentum, gaining over 14% in the past week and trading near its 52-week high of $95.94. According to InvestingPro data, Bunge currently trades at an attractive P/E ratio of 9.25.

The research firm sees Bunge positioned for a material step-up in earnings per share (EPS) in 2026 that could continue building in subsequent years. BMO Capital believes the company can achieve a $10+ EPS run-rate in 2026 once biofuel policy decisions are finalized, despite potential delays that could extend EPS limitations into the first quarter of 2026. The company’s strong financial health, rated as GOOD by InvestingPro, and its impressive track record of maintaining dividend payments for 25 consecutive years support this positive outlook.

BMO Capital’s analysis shows a path from Bunge’s second-half 2025 guidance base ($8.25 annualized) to the $10+ EPS target through U.S. crush margin improvements, refined profit growth, synergy capture, and the full impact of 2025 share buybacks.

The firm notes that Bunge has internal opportunities to drive EPS even higher beyond 2026, including additional synergies and buybacks, supported by strong cash generation and moderating growth capital expenditure spending.

With Bunge’s guidance update now complete, BMO Capital sees a favorable catalyst path ahead, including Renewable Volume Obligation finalization, potential synergy opportunity increases, and a recast EPS baseline.

In other recent news, Bunge Global SA has restructured its segment and volume reporting after completing its merger with Viterra Limited. The company has updated its full-year 2025 adjusted earnings per share outlook to approximately $7.30 to $7.60, which now includes Viterra’s contribution, reflecting an expected second-half adjusted EPS in the range of $4.00 to $4.25. Additionally, Bunge announced a $1.3 billion senior unsecured notes offering through its subsidiary, Bunge Limited Finance Corp. This offering includes two tranches of $650 million each, with differing maturity dates in 2030 and 2035.

In terms of analyst ratings, UBS has reiterated its Buy rating on Bunge with a $100.00 price target, citing a favorable biofuel outlook. JPMorgan has also assumed coverage on Bunge with an Overweight rating and a $95.00 price target, noting that agricultural industry fundamentals may have bottomed earlier this year. UBS analyst Manav Gupta highlighted that Bunge anticipates a favorable outcome regarding the Renewable Volume Obligation and Small Refinery Exemption reallocations by December 2025, as the Environmental Protection Agency and U.S. Department of Agriculture are working to protect farmer interests.

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