Oklo stock tumbles as Financial Times scrutinizes valuation
Investing.com - Stephens raised its price target on Bunge (NYSE:BG) to $115.00 from $85.00 on Friday, while maintaining an Overweight rating on the agricultural commodities trader. The new target represents significant upside from the current price of $95.33, with the stock already trading near its 52-week high of $98.11 after surging 18% in the past week.
The firm cited increased bullishness following Bunge’s business update call on its Viterra acquisition, noting that dilution risk from the deal proved less severe than initially feared.
Bunge provided combined business guidance for fiscal year 2025 earnings per share of $7.30-$7.60, compared to approximately $7.75 on a standalone basis, suggesting only modest dilution from the Viterra integration.
Stephens indicated that while board crush fundamentals have weakened since Bunge’s last earnings call, strong execution in the fourth quarter, particularly in crush operations, likely helped bridge potential shortfalls in standalone performance.
The firm views Bunge’s outlook as compelling, highlighting firm Renewable Volume Obligation (RVO) support, synergy realization, and continued benefits from geographic diversification as positive factors for the company.
In other recent news, Bunge has announced changes to its segment reporting following the merger with Viterra Limited. The company has updated its full-year 2025 adjusted earnings per share (EPS) outlook to approximately $7.30 to $7.60, incorporating Viterra’s contribution. This update reflects an expected second-half adjusted EPS in the range of $4.00 to $4.25. Meanwhile, BMO Capital has raised Bunge’s stock price target to $110, maintaining an Outperform rating, and anticipates a significant increase in EPS by 2026. UBS has reiterated its Buy rating with a $100 price target, expressing confidence in the company’s biofuel outlook. JPMorgan has assumed coverage with an Overweight rating and a $95 price target, citing favorable U.S. biofuel policies that may boost demand for soybean oil. These developments indicate a period of strategic adjustments and positive expectations for Bunge’s future performance.
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