Deutsche Bank Starts AGCO Corporation (AGCO) at Hold

Deutsche Bank initiated coverage on AGCO Corporation (NYSE: AGCO) with a Hold rating and a price target of $54.

Analyst Nicole DeBlase said, "Broadly, we are not quite ready to call the trough in Ag equipment demand – but this focuses on the NA high horsepower tractor segment of the market, where dealer inventory is still too high. Fortunately, AGCO does not have material exposure to NA HHP tractors – only 26% of total sales are generated in NA (vs. 53% for DE and 42% for CNHI), and this is focused on small/medium tractors. We also like the company’s outsized exposure to Brazil, which can add $1.16 (59%) to EPS over the next five years, in our base case recovery scenario. And while the outlook for W. Europe Ag equipment demand is far from exciting, stable is still better than down."

For an analyst ratings summary and ratings history on AGCO Corporation click here. For more ratings news on AGCO Corporation click here.

Shares of AGCO Corporation closed at $47.59 yesterday.

You May Also Be Interested In

• Citi Downgrades ICICI Prudential Life Insurance Co Ltd. (IPRU:IN) to Neutral
• Tourmaline Oil Corp. (TOU:CN) (TRMLF) PT Raised to Cdn$80 at Stifel Canada
• Citi Downgrades UBS AG (UBSG:SW) (UBS) to Neutral