Soon after Bunge Limited (BG) released its earnings for 1Q16, a few Wall Street analysts updated their target prices for the next 12 months. The recommendations remain the same. Around 58% of the analysts still 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 Bunge rose to $71.20 from $66.50. This represents a rise of 12% from the closing price of $62.52 on May 2, 2016. Archer Daniels Midland (ADM), Ingredion (INGR), and Lancaster Colony (LANC) have average broker target prices of $36.60, $119.0, and $115.75, respectively. These figures imply returns of ~10%, -3.4%, and 3.8%, respectively, in the next 12 months. The PowerShares DWA Consumer Staples Momentum Portfolio (PSL) and the iShares S&P MidCap 400 Value ETF (IJJ) invest a total of ~4% in Ingredion.
Recommendations for Bunge
Goldman Sachs and Credit Suisse gave Bunge the highest target prices of $86 and $78, respectively. These target prices imply rises of ~27% and 20%, respectively, from the closing price of $62.52 on May 2, 2016. They rate Bunge a “strong buy.”
Other firms that rate the stock a “strong buy” are BMO Capital Markets, Macquarie, Piper Jaffray, and Stephens. J.P. Morgan downgraded the stock from “overweight” to “neutral” before the earnings release with a target price of $57. However, it increased the target price to $60—consistent with the “hold” rating.
Feltl & Company and Piper Jaffray also updated their target prices to $60 and $72 after the 1Q16 earnings release. Feltl & Company rates the stock a “hold” while Piper Jaffray rates it a “strong buy.” Morgan Stanley rates Bunge a “hold.” It assigned Bunge the lowest target price of $56. This is 12% lower than the closing price on May 2. Morningstar didn’t provide a target price for the stock.