AGCO Corporation (AGCO) PT Raised to $152 at Truist Securities

Truist Securities analyst Jamie Cook raised the price target on AGCO Corporation (NYSE: AGCO) to $152.00 (from $134.00) while maintaining a Buy rating.

The analyst commented: "AGCO closed up 2% (vs S&P 500 down 1%) after exceeding the fourth quarter consensus adjusted EPS estimate by ~17% on better sales and margins and guiding for FY2026 adjusted EPS up ~9% year over year at the midpoint, albeit below consensus. EME continues to be the key earnings engine for the portfolio, delivering 16.8% operating margin and ~36% incremental margin on flat sales (excluding FX and acquisitions) reflecting positive price and favorable mix. Operating cash flow was also a standout in the quarter at $764M, with FY operating cash flow of $740M more than double that in 2024 ($297M). AGCO continues to make progress on dealer inventory reduction with EME sitting at 4 months (in line with AGCO's targeted range), North America now at 7 months (just one month shy of AGCO's 6-month target) and now SA up to 5 months (up from 4 months last quarter reflecting adjustments to lower forward sales expectations). In total, AGCO expects production to be relatively flat in 2026 with NA down 10% offset by modest production increases in EME and SA. For 2026, AGCO's industry guide came in as we expected with NA large ag down ~15% and the remaining regions flat to up modestly. Still, AGCO can grow earnings in 2026 with EPS guided to $5.50–$6.00 or $5.75 at the midpoint, up ~9% y/ y. AGCO expects to realize 2–3% pricing despite a sluggish farmer backdrop. Finally, AGCO continues to deliver on the cash back to shareholder story buying back $250M of stock in the fourth quarter under its $1B share authorization. With the TAFE resolution behind AGCO, we expect a more consistent buy back and for AGCO to continue to pay and increase its quarterly dividend."

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