In a report released yesterday, Stephen Volkmann from Jefferies maintained a Buy rating on Agco (AGCO – Research Report), with a price target of $120.00.
Stephen Volkmann has given his Buy rating due to a combination of factors that highlight AGCO’s potential for growth and improved financial performance. The company is actively working to enhance its mid-cycle margins by 450 basis points to approximately 14.5%, which is supported by strategic inventory reductions and growth opportunities with its Fendt brand, technology retrofits, and parts. Additionally, the anticipated settlement with TAFE’s CEO not seeking re-election to AGCO’s board suggests that share repurchases could soon commence, providing further value to shareholders.
AGCO’s long-term growth prospects are promising, with the company targeting market share expansion through its Fendt brand in North and South America, as well as growth in its Trimble PTx and parts segments. The company aims to achieve significant revenue growth by 2029, driven by performance, distribution strength, and product line expansion. Furthermore, AGCO’s restructuring efforts, including workforce reductions and cost-saving measures, are expected to contribute to margin improvements, positioning the company for enhanced profitability in the coming years.
According to TipRanks, Volkmann is a top 100 analyst with an average return of 18.2% and a 64.43% success rate. Volkmann covers the Industrials sector, focusing on stocks such as Agco, Eaton, and Deere.
In another report released on March 18, J.P. Morgan also maintained a Buy rating on the stock with a $0.00 price target.