Mar. 25 at 4:39 PM
Spruce Point Capital issue Strong Sell short report on
$BG
Bunge faces up to -55% to -80% potential long-term downside to approximately
$24.50–
$55.85/share, representing material risk of market underperformance.
"We provide evidence that since 1999, the Company has generated a cash flow deficit of -
$1.6B after capital expenditures, business investment, and asset-shuffling & repositioning, while making
$4.7B &
$3.9B of dividends & share repurchases effectively through debt-financing"
In 2022, Bunge provided a mid-cycle update & outlined its growth framework for base EPS to be ~
$11/share by 2026. Now in 2026, and having spent
$10.6B to acquire Viterra & assume
$34B of revenue along w/ acquiring IFF’s soy protein concentrate, lecithin, & soy crush businesses w/
$240M of revenue, Bunge guided 2026 EPS to be
$7.50-
$8.00/share or ~30% below the previous target.