Bunge downgraded to Neutral from Buy at Citi

Citi downgraded Bunge to Neutral from Buy with a price target of $114, down from $125. The analyst sees continued earnings pressures at the industry level, especially in North America, driven mainly by growing industry crush capacity and less demand growth from the U.S. biofuels industry. In addition, Bunge’s pending Viterra acquisition might not be as earnings accretive as once expected because the industry margin environment is less favorable than when the transaction was announced, the analyst tells investors in a research note. Citi no longer sees enough upside to be more constructive on the shares.