Bunge Global SA (BG), established in 1818 and headquartered in Chesterfield, Missouri, is a global leader in agribusiness and food production. With a market cap of $12.2 billion, Bunge is renowned for its extensive expertise in oilseed processing, grain trading, and the production of plant-based oils and specialty ingredients. The company operates a diverse portfolio that supports food security and sustainability, delivering high-quality agricultural products and innovative solutions to consumers and industries worldwide.
Shares of Bunge Global have underperformed the broader market considerably over the past year. The stock has declined 17% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 32.1%. In 2024, BG stock is down 11.2%, while SPX is up 26.2% on a YTD basis.
Narrowing the focus, BG has underperformed the VanEck Agribusiness ETF (MOO), which has declined about 3.7% over the past year and 6% on a YTD basis.
Bunge Global has underperformed the broader market this year, driven by challenges in the agricultural commodities sector, including weaker demand and pricing pressures. Geopolitical uncertainties further weighed on global trade, exacerbating market headwinds. Following the release of its Q3 earnings on Oct. 30, the stock declined by 2.1%. The company reported an adjusted EPS of $2.29, exceeding the consensus estimate of $2.18 but marking a 23.4% decline compared to last year.
Bunge also updated its 2024 guidance, projecting adjusted EPS of $9.25 while outlining mixed performance across its segments, higher tax rates, increased capital expenditures, and reduced income due to divestitures.
For the current fiscal year, ending in December, analysts expect BG’s EPS to decline 31.4% to $9.37 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on one other occasion.
Among the six analysts covering BG stock, the consensus is a “Moderate Buy.” That’s based on four “Strong Buy” ratings and two “Holds.”
This configuration is less bullish than three months ago, with five analysts suggesting a “Strong Buy.”
On Nov. 5, Morgan Stanley (MS) analyst Steven Haynes maintained a “Hold” rating on Bunge Global, with a price target of $90, suggesting a modest upside from current levels.
The mean price target of $106.43 represents an 18.7% premium to BG’s current price levels. The Street-high price target of $116 suggests an upside potential of 29.4%.
