Skip to Content
Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Raising Our Bunge FVE to $75 on Improved Near-Term Outlook; Shares Slightly Overvalued

Seth Goldstein, CFA Senior Equity Analyst

Analyst Note

| Seth Goldstein, CFA |

Bunge reported strong third-quarter results, as adjusted core segment EBIT was up 20% year on year versus the prior-year quarter. The growth was driven by higher agribusiness and refined and specialty oils results. We have increased our near-term outlook for the agribusiness segment, as we expect favorable grain merchandising conditions will remain in place throughout much of 2022. However, we expect 2021 will represent a cyclical peak for the business, and our long-term outlook remains intact. After updating our model to reflect these changes, we’ve increased our fair value estimate for Bunge to $75 per share from $74. Our no-moat rating is unchanged.

Read Full Analysis

Company Profile

Business Description

Founded in 1818, Bunge is a global agribusiness and food company with operations along the farm-to-consumer food chain. The agribusiness segment generates roughly two thirds of profits and includes the largest oilseed processing capacity globally. The company is a leading oilseed processor and seller of packaged vegetable oils and other food and ingredients products.

Contact
1391 Timberlake Manor Parkway
St. Louis, MO, 63017
T +1 314 292-2000
Sector Consumer Defensive
Industry Farm Products
Most Recent Earnings Sep 30, 2021
Fiscal Year End Dec 31, 2020
Stock Type
Employees 23,000

Related