Dec. 16 at 4:56 PM
Morgan Stanley upgraded Bunge to Overweight and downgraded Archer-Daniels-Midland to Underweight, raising Bunge’s price target to
$120 and cutting ADM’s to
$50.
The bank said Bunge offers a better risk-reward profile as synergies from its Viterra acquisition emerge, with early results suggesting upside to earnings. Morgan Stanley expects Bunge to reset its mid-cycle EPS baseline to about
$12 at its March 10 investor day, with potential upside to
$15.
For ADM, the bank warned of growing downside risks, noting that optimism around U.S. biofuels policy may be masking weakness in its Carbohydrate Solutions segment. Earnings expectations for 2026 appear stretched, and ADM’s valuation premium could be pressured if negative revisions continue.
$BG $ADM $MS