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Morningstar’s Analysis

Valuation
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Raising Our Bunge Fair Value Estimate to $74 on Higher Near-Term Outlook; Shares Fairly Valued

Seth Goldstein, CFA Senior Equity Analyst

Analyst Note

| Seth Goldstein, CFA |

Bunge reported solid second-quarter results. Adjusted core segment EBIT was slightly down as lower agribusiness processing profits were nearly offset by strong growth in the rest of the business. The lower grain processing profits were in line with our previous outlook for the year. However, we've updated our model to incorporate stronger merchandising and refined and specialty oils results as well as the impact of our higher assumed U.S. corporate tax rate. Having updated our model to reflect these changes, we raise our Bunge fair value estimate to $74 per share from $72. Our no-moat rating is unchanged. At current prices, we view Bunge shares as fairly valued with the stock trading just above our fair value estimate and firmly in 3-star territory. 

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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 Jun 30, 2021
Fiscal Year End Dec 31, 2020
Stock Type
Employees 23,000

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