Spain’s credit rating upgraded to ’A+’ by S&P on strong growth
Investing.com - UBS has reiterated its Buy rating and $100.00 price target on Bunge (NYSE:BG), currently trading at $83.66, following a management meeting at the firm’s Materials Conference. The prominent food products player, with a market capitalization of $16.75 billion, currently trades at an attractive P/E ratio of 8.28.
UBS analyst Manav Gupta noted that Bunge expects the final Renewable Volume Obligation (RVO) and a decision on Small Refinery Exemption (SRE) reallocations by December 2025. The company anticipates a favorable outcome as the Environmental Protection Agency and U.S. Department of Agriculture are working closely to protect farmer interests. InvestingPro data shows Bunge maintains strong financial metrics with a current ratio of 2.07, indicating solid liquidity to support its growth initiatives.
The analyst highlighted that the Indirect Land Use Change penalty for soybean oil has been dropped, improving its Carbon Intensity score and making it more competitive with alternative feedstocks like tallow and used cooking oil.
With foreign feeds receiving no production tax credit and only 50% of Renewable Identification Numbers, Bunge expects stronger demand for soybean oil to meet higher Renewable Volume Obligations in 2026 and 2027.
Bunge plans to provide updated 2025 earnings guidance that will incorporate Viterra, with re-segmentation likely to appear in third-quarter 2025 results, according to the UBS note. For deeper insights into Bunge’s financial health and growth prospects, including exclusive ProTips and comprehensive analysis, visit InvestingPro, where you’ll find detailed research reports covering 1,400+ top stocks.
In other recent news, Bunge Limited reported its Q2 2025 earnings, revealing a mixed financial performance. The company posted earnings per share of $1.31, surpassing analyst expectations of $1.14, marking a positive surprise of 14.91%. However, Bunge’s revenue of $9.17 billion fell short of the anticipated $12.46 billion, representing a significant revenue miss of 26.4%. Additionally, Bunge announced plans to raise $1.3 billion through a senior unsecured notes offering, consisting of two equal tranches due in 2030 and 2035.
Analyst activity around Bunge has been notable, with JPMorgan assuming coverage with an Overweight rating and a price target of $95, citing increased demand for soybean oil driven by U.S. biofuel policies. UBS also reiterated its Buy rating on Bunge, setting a price target of $100, maintaining a positive outlook on the company’s future. These recent developments highlight the varied investor sentiment and strategic moves surrounding Bunge.
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