Bank of America Comments on EPS at Bunge Limited

Bank of America has published a report on Bunge Limited BG focusing on EPS changes. In the report, Bank of America wrote, "BG reported 2Q11 EPS of $1.79, $0.29 ahead of our estimate. Key takeaways from quarter: 1) Agribusiness results were solid in the quarter as a result of large harvests in South America, benefiting grain and oilseed processing businesses; 2) crush margins remain challenged and below historical levels, although showed modest improvement y/y in US and Europe; 3) Sugar results should benefit from higher pricing in 2H11, offsetting a decline in milling volumes which were lowered from 17 mil MT to 15 mil MT; 5) Fertilizer results are still expected to improve in 2H11 as volumes increase given high grain prices; and 6) tax rate for full year is lowered from 15% to 10%, and 2012 rate is lowered from 16% to 12%." Bank of America rated Bunge Limited a Neutral with a price target of $79.00. Bunge Limited closed Thursday at $69.44.