Bunge initiated with a Buy at Citi

Citi initiated coverage of Bunge with a Buy rating and $108 price target. Lower crush margins and refined oil spreads could lead to earnings downside, but these headwinds are most acute in North America and the company’s South America-centric operations could help insulate the flow through to earnings, the firm tells investors. Bunge, which should benefits from share repurchases and the pending acquisition of Viterra, is also trading near historic support levels on price/book, the analyst added.