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Investing.com - JPMorgan has assumed coverage on Bunge Global (NYSE:BG), a prominent player in the Food Products industry with a market cap of $16 billion, with an Overweight rating and a $95.00 price target. According to InvestingPro data, the stock currently trades at an attractive P/E ratio of 7.9x, suggesting potential upside.
The firm believes agricultural industry fundamentals may have bottomed earlier this year, citing U.S. biofuel policies that appear set to increase demand for soybean oil.
JPMorgan acknowledges the tactical risk of owning Bunge shares when a guidance cut is likely coming next quarter due to dilution from the recently closed Viterra acquisition.
However, the investment bank suggests this potential guidance cut has already weighed on Bunge shares for multiple quarters and is therefore "well understood" by the market.
JPMorgan expects improving industry trends and efficiencies from the Viterra acquisition to drive Bunge’s earnings higher over time.
In other recent news, Bunge Limited reported its Q2 2025 earnings, revealing a mixed financial outcome. The company achieved an earnings per share (EPS) of $1.31, surpassing analyst expectations of $1.14, marking a positive surprise of 14.91%. However, Bunge’s revenue for the quarter was $9.17 billion, which was significantly below the anticipated $12.46 billion, resulting in a revenue miss of 26.4%. In another development, Bunge Global SA announced a $1.3 billion senior unsecured notes offering through its finance subsidiary, Bunge Limited Finance Corp. This offering is divided into two tranches, with $650 million of 4.550% Senior Notes due 2030 and $650 million of 5.150% Senior Notes due 2035. Additionally, UBS reiterated its Buy rating on Bunge, maintaining a price target of $100. These recent developments reflect a complex financial landscape for Bunge, with strong EPS performance, strategic financing actions, and continued analyst confidence.
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