Bunge initiated with a Buy at Roth MKM

Roth MKM analyst Brian Wright initiated coverage of Bunge with a Buy rating and $138 price target. Thanks to the company’s asset portfolio optimization in recent years, there should be less relative financial performance volatility going forward, the analyst tells investors in a research note. Bunge shares should also benefit from a greater growth profile given its favorable geographic profile with more exposure to higher growth South America, the firm added, though it also believes that more consistent margins going forward should improve the company’s relative valuation discount.