Analyst Note| Seth Goldstein, CFA |
Bunge delivered strong first-quarter results as adjusted segment EBIT more than doubled, driven by higher results in the agribusiness and refined and specialty oil segments. While we had expected the company's results would reflect the favorable agribusiness conditions, we have increased our near-term outlook to account for higher near-term agribusiness segment profits than we previously expected. Our long-term outlook is unchanged. Having updated our model, we raise our fair value estimate for the firm to $72 per share from $70. Our no-moat rating is unchanged.