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Investing.com - BofA Securities has reiterated its Buy rating and $90.00 price target on Bunge (NYSE:BG), currently trading at $75.80, following the completion of the Viterra acquisition on July 2. According to InvestingPro data, Bunge, with a market cap of $15.13 billion, maintains strong financial health with a current ratio of 2.04 and offers a 3.57% dividend yield.
The firm analyzed Bunge’s recent 8K filing, which contained historical Viterra financials, IFRS to GAAP conversions, and pro forma figures for the combined entity.
BofA noted that while the filing showed significant EPS dilution on a pro forma basis, with 2024 pro forma EPS of $5.62 versus $7.99 for standalone Bunge and first quarter 2025 at $0.31 versus Bunge’s $1.48, these figures do not include any adjustments.
The research firm pointed out that Bunge’s adjusted 2024 EPS was almost 20% above its GAAP level, suggesting the pro forma figures may not fully represent the combined company’s potential performance.
BofA indicated it sees "limited value in the incremental data" from the filing and is instead focusing on details of the pro forma balance sheet and capital structure of the combined Bunge-Viterra entity.
In other recent news, Bunge has completed its merger with Viterra, forming a major global agribusiness entity. This merger, confirmed by Glencore (OTC:GLNCY), is designed to connect farmers in key production regions with areas experiencing increased consumption demands. Bunge’s leadership will remain in place, with Greg Heckman continuing as CEO and John Neppl as CFO. The merger also resulted in Glencore receiving approximately 32.8 million shares in Bunge and around $900 million in cash. S&P Global Ratings upgraded Bunge Global S.A. to ’A-’ from ’BBB+’ following the merger, citing improved business risk profiles and enhanced diversification. UBS has maintained its Buy rating on Bunge, with a price target of $100.00, noting expected synergies and stable cash flows from the merger. Additionally, Bunge has received approval from Chinese antitrust authorities for its $8.2 billion acquisition of Viterra, marking the final regulatory hurdle for the deal. In a separate development, Bunge has shipped its first Argentine soybean meal cargo to China, a significant move since Beijing approved Argentine imports in 2019.
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