Analysts’ Take on Bunge before 1Q16 Earnings
Will Bunge’s 1Q16 Results Be a Slow Start to 2016?
Analysts’ ratings of Bunge
In this article, we’ll look at what Wall Street analysts recommend for Bunge Limited (BG) before its 1Q16 earnings release. We’ll also look at analysts’ 12-month target prices for BG. Around 58% of analysts rate Bunge a “buy,” and 42% rate it a “hold.” None of the analysts rate it a “sell.”
Analysts’ target prices for Bunge
The average broker target price for BG is $66.50. This represents a rise of 10% from the closing price of $59.89 on April 22, 2016. Archer Daniels Midland (ADM), Ingredion (INGR), and Lancaster Colony (LANC) have average broker target prices of $36.60, $106.17, and $110.67, respectively. These figures imply returns of ~8%, -0.14%, and -0.71%, respectively, in the next 12 months. The PowerShares DWA Consumer Staples Momentum Portfolio (PSL) and the PowerShares S&P MidCap Low Volatility Portfolio (XMLV) invest a total of ~4% in INGR.
Recommendations for Bunge
Goldman Sachs and Stephens have given Bunge the highest target prices of $77 and $75, respectively. These target prices imply rises of ~22% and 20%, respectively, from the closing price of $59.89 on April 22. They rate BG a “strong buy.”
Other firms that rate the stock a “strong buy” are BMO Capital Markets, Macquarie, Piper Jaffray, and Credit Suisse. In contrast, J.P. Morgan has downgraded the stock from “overweight” to “neutral.” The target price, however, remains the same at $57.
Feltl & Company, J.P. Morgan, and Piper Jaffray also cut their target prices after the 4Q15 earnings release. Feltl & Company has assigned Bunge the lowest target price of $51 and rated it a “hold.” This price is still 17% higher than the closing price on April 22. J.P. Morgan, Morningstar, and Morgan Stanley rate Bunge a “hold.” Morningstar didn’t provide a target price for the stock.
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