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Credit Suisse Lowers Bunge Target Price

Rising natural gas prices in Europe, COVID lockdowns in China put pressure on soy crush margins

Burak the Weekender | PEXELS
Burak the Weekender | PEXELS

On June 24, Credit Suisse lowered its target price for Bunge Ltd. from $140 to $125, citing a less exciting crush margin environment.

The research firm also lowered its 2022 earnings-per-share estimate to $12.41 from $13.72. The cuts came following Credit Suisse’s meetings with Bunge management.

“We are now slightly below consensus of $12.86 but still above guidance for ‘at least $11.50’ of EPS,” Robert Moskow, research analyst at Credit Suisse, wrote in the June 24 report.

“Rising natural gas prices in Europe and COVID lockdowns in China have put some incremental pressure on soy crush margins.

"However, crush margins in South America rebounded as expected in 2Q, cash crush margins in the U.S. have held up better than what the falling board margins suggest, and the company continues to capitalize on alternative sourcing opportunities related to the Ukraine war. On a net basis, the year appears to be playing out largely as management expected.”

Other analysts issue reports on Bunge stock

According to reports, a number of other analysts also recently issued reports on the stock.

Bank of America downgraded shares of Bunge from a buy rating to a neutral rating and increased their price target for the stock from $120.00 to $134.00 in a report on Tuesday, April 19th. raised shares of Bunge from a hold rating to a buy rating in a report on Wednesday.

Finally, Barclays increased their price objective on shares of Bunge from $120 to $135 and gave the company an overweight rating in a report on Monday, April 25.

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