Bunge stock hits 52-week low at $75.72 amid market shifts

In a notable shift within the commodities market, Bunge Limited (NYSE:BG) stock has touched a 52-week low, reaching a price level of $75.72. Trading at an attractive P/E ratio of 9.5x and generating a robust free cash flow yield of 10%, InvestingPro analysis suggests the stock is currently undervalued. The agribusiness and food company, which has a significant presence in the global supply chain of agricultural commodities, has seen its shares retreat from higher levels over the past year. This downturn reflects a broader trend in the sector, with Bunge’s stock experiencing a 1-year change of -16.03% and a particularly sharp decline of -25.12% over the past six months, signaling a period of bearish sentiment among investors as they navigate through a complex landscape of fluctuating demand and supply dynamics, regulatory challenges, and geopolitical tensions that have impacted the industry at large. For deeper insights into Bunge’s valuation and 15+ additional exclusive ProTips, visit InvestingPro to access the comprehensive Pro Research Report.

In other recent news, Bunge Limited has been a focal point of several key developments. The company’s third-quarter earnings per share (EPS) decreased to $2.29 from $2.99 in the same period last year, primarily due to costs associated with its pending merger with Viterra. Bunge Global SA expanded its share repurchase program by an additional $500 million, bringing the total available for share repurchases to approximately $1.3 billion. The company also reported a decrease in its share capital by $61,469, reflecting its ongoing efforts to manage its capital structure effectively.

Analysts from Barclays (LON:BARC) and Citi have adjusted their outlook on Bunge. Barclays analyst Benjamin Theurer downgraded the company’s rating from Overweight to Equal Weight and reduced the price target from $115.00 to $95.00. Citi analysts, led by Thomas Palmer, lowered the price target for Bunge from $94.00 to $86.00, maintaining a Neutral rating. Both adjustments come amid expectations of decreased profit due to narrower crush margins and refined oil spreads.

The company’s pending acquisition of Viterra, expected to close in early 2025, could potentially dilute Bunge’s earnings per share (EPS) by more than $1.50 in 2025. Despite this, the EPS forecast for 2024 remains unchanged at $9.39. These are recent developments in Bunge, providing investors with an update on the company’s financial performance and future plans.

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