Tuesday, June 24, 2008

Bunge (NYSE:BG): Davenport raises tgt to $160 - new Street high

Davenport is out raising Bunge (NYSE:BG) tgt to $160 from $140 and adding to Value Chain. Firm notes this transaction supports their belief that we will continue to see consolidation across the Ag space as companies seek to capture strong presence in different commodity segments.

The combination of BG and CPO will create a larger,more diversified and competitive global provider of agribusiness and food products and will give BG an established global presence in the corn value chain. By adding CPO's value-added sweeteners, starches, and other ingredients to BG's portfolio of agribusiness, fertilizer, edible oil and milling products, the combined company will have an enhanced, more balanced product portfolio. The combination will also combine both companies' strong core geographies, as well as high growth geographies such as Asia and Latin America, among others.

Notablecalls: Davenport's $160 tgt is the new Street high tgt for BG. This confirms my view BG is a bounce candidate here. Will likely see $113-$114 today.

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