In the week leading up to Bunge’s earnings release for 4Q15, Wall Street analysts provided target prices for the next 12 months. Out of the ten analysts who rated the stock, seven of them rate it a “strong buy.”
Consensus rating for Bunge
Approximately 67% of the analysts rate Bunge a “buy” and 33% rate it a “hold.” None of the analysts rate it a “sell.” The average broker target price for Bunge is $81.49. This is 37% higher than the closing price of $59.5 on February 4, 2016. The company’s peers like Archer Daniels Midland (ADM), Ingredion (INGR), and B&G Foods (BGS) have average broker target prices of $39.8, $103.1, and $39, respectively. These figures imply returns of ~16%, 4%, and 11%, respectively, in the next 12 months. These stocks are all part of the First Trust Consumer Staples Alpha DEX Fund (FXG). FXG invests 3.0% in Archer Daniels Midland, 1.5% in Bunge, and 3.2% in Ingredion, respectively.
Bunge’s individual recommendations
Regarding individual recommendations, Goldman Sachs and Stephens gave Bunge the highest target price of $90, respectively. This target price is ~51% higher than the closing price of $59.5 on February 4. They rate it a “strong buy.” BMO Capital Markets gave the second-highest price target of $87, respectively. This implies respective returns of ~46% in the next 12 months. BMO Capital Markets rates the stock a “strong buy.” Other firms that rated the stock a “strong buy” are Piper Jaffray, Macquarie, and Credit Suisse.
J.P. Morgan assigned Bunge the lowest target price of $61. It rated it a “hold.” This is ~2.5% higher than the closing prices of $59.5 on February 4, 2016. Morningstar didn’t provide a target price. However, it rated Bunge a “strong buy.”