Robust Crop Margins See Bunge Limited Stock Retracing 50%: Should You Buy?

• Bunge Limited sees retracement after hitting $128.
• The stock benefits from high crop margins.
• JPMorgan has a buy rating of NYSE: BG, with the target at $130.
• Bunge Limited is one of the stocks flourishing as the Russia-Ukraine crisis escalates. Trading with NYSE: BG ticker, the stock returned nearly 27% on YTD at this publication. That had its gains within a year totaling 38%. Higher margins amid the Ukraine conflict propelled the massive returns.

Bunge is a food trading and agribusiness company. With its sector of operation, increased demand for grain globally saw it flourishing. The firm reported its 2022 Q1 outcomes on 27 April at $11.23 billion, higher than $9.79 billion the previous year.

Bunge’s top unit, Agribusiness, recorded a nearly 15% surge in sales. That came amid massive demand in the United States, Brazil, and Europe. The arm saw a 7% fall in volumes, indicating global grain market disruptions by the Russia-Ukraine war.

Bunge will likely benefit from increasing crop prices as the war escalates. The company considered this in its $11.50 per share guidance in FY22, higher than the previous $9.50. Also, the guidance reflects amplified margins from low crops supply amid poor weather conditions in South Africa.

Bunge Stock Retraces after Striking $128

Bunge sees a massive uptrend that began in late December (according to the technical standpoint). The stock lost 50% after exploring the $128 highs. Meanwhile, the retracement encountered the upside trend line, and the share aims at the $128 mark again. The area stayed briefly lower than JPMorgan’s prediction of $130.

Final Thoughts

Bunge Limited exhibits a massive bullish potential. The stock receives support from healthy crop margins. The current retracement by the share reveals an opportunity to purchase NYSE: BG, targeting a $128 upside. Analysts eye the $130 mark, but the stock might extend higher amid the prevailing supply-demand imbalances.

You can purchase the token at the current discounted prices and wait for uptrends. Also, the ongoing crisis between Russia and Ukraine could continue hurting the global grains market, translating to intensified demand. That’s healthy for Bunge Limited stock.