Bunge upgraded to Buy from Hold at HSBC

HSBC analyst Wesley Brooks upgraded Bunge to Buy from Hold with a price target of $105, down from $122. The company’s Q4 earnings beat, but the forward earnings guidance points to a faster than expected normalization in crush spreads, the analyst tells investors in a research note. The firm believes Bunge’s expectations are now reset and the stock’s valuation is attractive at an 18% discount to historical averages on near mid-cycle earnings. HSBC sees potential for positive earnings surprises.