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Bunge (NYSE:BG) shares fell on Thursday as Baird stepped on the margins following a disappointing earnings report on Wednesday.
An agricultural company based in St. Louisu reported sales below expectations on Wednesday, while also offering some soft guidance. The latter was a particular point of contention for Baird in his demotion.
“While guidance is likely conservative and a starting point for this year, we expect stocks to falter in the near term until there is more clarity as far as 2023 and beyond is concerned,” equity analyst Ben Kallo told clients. “While we like BG’s management team and valuation, we prefer Darling Ingredients (DAR) and Archer-Daniels-Midland (ADM) for sector exposure.”
He added that Bunge’s decision not to buy back any shares during the reporting quarter raised a red flag. As such, Kallo raised its rating to Neutral from its previous Outperform and lowered its price target to $115 from $128.
Shares of Bunge (BG) fell 2.13% in afternoon trading on Thursday.
Read the company’s latest earnings call transcript.