Jefferies says that Agco (AGCO) is now free to resume share repurchases following a finalized agreement with Tractors and Farm Equipment that limits the latter’s ownership to 16.3%. The resolution also ends all commercial ties and legal proceedings, while reinforcing governance clarity – TAFE retains voting rights but relinquishes board representation, and Agco divests its stake in TAFE. A share repo program of about $300M would result in 17c/share EPS tailwind at the current share price, the firm notes. Jefferies has a Buy rating on Agco with a price target of $120.
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