Chesterfield, Missouri-based Bunge Global SA (BG) is an integrated global agribusiness and food company spanning the farm-to-consumer food chain. The company has a market cap of $22.2 billion and operates through Soybean Processing and Refining, Softseed Processing and Refining, Other Oilseeds Processing and Refining, and Grain Merchandising and Milling segments.
Companies with a market cap of $10 billion or more are typically referred to as “large-cap stocks.” BG fits squarely in that category, with a market cap above this threshold that reflects its size and influence in the farm products industry.
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Despite its strength, BG stock slipped 16.5% from its 52-week high of $134.87, reached on June 6. The stock is up marginally over the past three months, lagging behind the S&P 500 Index’s ($SPX) 3.5% rise during the same time frame.
www.barchart.comHowever, the scenario changes in the longer term. The stock has grown 42.2% over the past 52 weeks, while SPX delivered 16.5% returns over the same time frame, underperforming the stock.
BG has been trading below its 200-day and 50-day moving averages since this month, indicating a potential short-term bearish momentum.
www.barchart.comOn Sept. 1, BG stock rose 4.2% following the announcement of an agreement to sell two of its Brazilian sugarcane mills to COFCO International. The company is set to divest the Rio Vermelho and Nova Unialco mills located in the state of São Paulo, allowing it to optimize its regional asset base and streamline its agricultural operations. News of this sale resonated well with investors, viewing it as a constructive step toward strengthening BG’s operational footprint and directing capital to its core global supply chain activities.
When stacked against its rival, Archer-Daniels-Midland Company (ADM), BG has outperformed. Over the past year, ADM stock has grown 35.3%.
Analysts’ view of BG stock is highly bullish. Among the eight analysts covering the stock, the overall consensus rating is “Strong Buy.” Its mean price target of $137.45 offers a 22.1% upside potential.
On the date of publication, Aritra Gangopadhyay did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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