UBS Maintains Buy Rating On Bunge (BG) On Biofuel Prospects

Core Insights - Bunge Global SA (NYSE:BG) is a prominent agribusiness and food company, founded in 1818, with a diverse portfolio including Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy. It ranks 7th among S&P 500 stocks with a low PE ratio [1] Group 1: Investment Outlook - UBS has maintained a Buy rating on Bunge with a price target of $100, following discussions with the company's management at the UBS Materials Conference [1] - Analyst Manav Gupta from UBS indicates that Bunge anticipates favorable outcomes regarding the Renewable Volume Obligation (RVO) and Small Refinery Exemption (SRE) decisions by December 2025, aided by collaboration between the EPA and USDA [2] - Bunge expects an increase in soybean oil demand in 2026 and 2027, as foreign feedstocks lack production tax credits and only receive 50% of Renewable Identification Numbers [4] Group 2: Regulatory and Market Factors - The removal of the Indirect Land Use Change penalty for soybean oil improves its Carbon Intensity rating, allowing it to compete effectively with other feedstocks like tallow and recycled cooking oil [3] - Bunge plans to update its 2025 earnings guidance to include Viterra, with expectations of re-segmentation reflected in Q3 2025 results [4]