Quantcast

Consumer Sector Update for 09/12/2017: BG,ROST,LMNR


Shutterstock photo

Top Consumer Stocks

WMT +0.68%

MCD -3.13%

DIS +0.93%

CVS +3.26%

KO +0.29%

Consumer stocks were posting moderate gains this afternoon, with shares of consumer staples companies in the S&P 500 slipping to a 0.1% increase while shares of consumer discretionary firms in the S&P 500 were hanging on for a nearly 0.5% advance.

In company news, Bunge Ltd ( BG ) declined Tuesday, with shares of the agribusiness and food processing company falling almost 8% at one point and touching a session low of $69.94 each, after the company said it was acquiring a 70% equity stake in a producer of palm oil and other tropical oil-derived products for $946 million.

Bunge said the deal for IOI Loders Croklaan, currently a subsidiary of Maylasia's second-largest publicly owned palm-oil producer, IOI Corp., will immediately add to its cash earnings during the first 12 months after closing. It sees Loders generating around $105 million in earnings before interest, taxes, depreciation and amortization during 2018, with GAAP earnings growing by 5% and 7%, respectively, over current projections during years two and three.

In a related move, the company said it would likely fund the transaction with proceeds from a new, $900 million, unsecured, delayed-draw credit facility maturing in September 2020 with Sumitomo Mitsui Banking Corp.

Also, analysts at Robert W. Baird & Co. began coverage of Bunge stock with a Neutral rating and a $77 price target.

In other sector news,

(+) ROST, (+3.0%) Bernstein begins analyst coverage with Outperform rating and a $74 price target.

(-) LMNR, (-7.1%) Reiterates FY17 net income of $0.51 to $0.55 per share, trailing the analyst consensus by at least $0.05 per share. Also reports fiscal Q3 EPS of $0.52, down from $0.71 per share in year-ago levels but still matching Street views. Sales rise 1.2% to $40.4 mln, topping the $37.9 mln consensus.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.



This article appears in: Business , Commodities
Referenced Symbols: BG , ROST , LMNR


More from MT Newswires

Subscribe






MT Newswires
Contributor:

MT Newswires

Market News, Commodities








Research Brokers before you trade

Want to trade FX?





Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com