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

Bunge Global SA (NYSE:BG), founded in 1818 and based in Missouri, is a global agribusiness and food company. Its main segments are Agribusiness, Refined and Specialty Oils, Milling, and Sugar and Bioenergy. It ranks 7th on our list of the S&P 500 stocks with a low PE ratio.

On September 8, UBS maintained a Buy rating and a $100 price target on BG, after meeting the company’s management at the UBS Materials Conference.

According to UBS analyst Manav Gupta, Bunge expects the final Renewable Volume Obligation (RVO) and Small Refinery Exemption (SRE) reallocation decisions by December 2025, with a favorable outcome possibly due to the tight collaboration between the Environmental Protection Agency (EPA) and the US Department of Agriculture (USDA) to support farmers.

Gupta highlighted that eliminating the Indirect Land Use Change penalty for soybean oil enhances its Carbon Intensity rating, placing it on even footing against feedstocks like tallow and recycled cooking oil.

Bunge expects soybean oil demand to rise in 2026 and 2027, since foreign feedstocks have no production tax credit and only 50% of Renewable Identification Numbers. Bunge plans to release updated 2025 earnings guidance incorporating Viterra, with UBS expecting re-segmentation to be evident in Q3 2025 results.

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