Bunge: Merger With Viterra, Ethanol, And Low Stock Price Will Pave The Way

2025-06-26 07:53:54 ET

Investment Thesis

I grant Bunge Global SA ( BG ) a Buy rating. I am of the opinion that the company experiences a significant undervaluation. In 2018, the company reported net income of $287 million, increasing to $1,188 million in 2024. However, the current stock price of Bunge is slightly higher than that observed in 2018. In addition, with the merger between Bunge and Viterra, Bunge's revenues will experience a significant increase. To provide context, in the first six months of 2024, both companies have similar revenue sizes. Furthermore, if Bunge can improve Viterra's net income margin after the merger, Bunge could experience a significant increase in its net income. Additionally, U.S. President Donald Trump's administration proposed higher quotas in the amount of biofuel that oil refineries are required to blend over the next two years. The biofuel quota is expected to increase by 7.57% in 2026 compared to 2025, which is a positive aspect for Bunge....

Read the full article on Seeking Alpha

For further details see: