Bunge (NYSE:BG) Valuation Should Rise on Soybean Prices, US Dollar Weakness

Bunge (NYSE:BG) has been challenged concerning its valuation, but according to Jefferies (NYSE:JEF), they see that changing heading into 2011.

They noted, "We expect Bunge's valuation to move off of its current trough level in 2011 driven by: 1) the resumption of system volume growth, 2) favorable soybean price trends through 1H11, 3) potential U.S. Dollar depreciation, and 4) a growing investor awareness of Bunge's Brazilian sugar and ethanol opportunity."

Jefferies initiated coverage on Bunge today with a "Buy" rating. Bunge was trading at $61.76, up $0.25, or 0.36 percent. Jefferies has a price target of $78 on them, basing it on their EPS/revenue estimates for full year 2010 and full year 2011 of $3.72/$44.9 billion and $5.20/$48.5 billion.