AGCO Corp. Downgraded by Zacks to Underperform (AGCO)
AGCO Corp. (NASDAQ:AGCO) was downgraded by Zacks from a “neutral” rating to an “underperform” rating in a research note issued to investors on Wednesday, ARN reports. They currently have a $51.00 target price on the stock. Zacks‘ target price would suggest a potential downside of 8.27% from the company’s current price.
Zacks‘ analyst wrote, “We are downgrading our recommendation on AGCO from Neutral to Underperform, with a target price of $51. AGCO’s third-quarter 2013 earnings increased 32% year over year to $1.27 per share. Total revenue also rose 8% year over year to $2.5 billion. However, the absence of current depreciation tax benefits in U.S. and potential FINAME borrowing cost increases in Brazil will hurt earnings. Despite improved results, AGCO reiterated its full-year 2013 earnings per share guidance of $6.00. In addition, margins will be affected by the rise in engineering expenses. Moreover, strong growth in South America and modest performance in North America are expected to be offset by moderate decline in Western Europe.”
Shares of AGCO Corp. (NASDAQ:AGCO) traded down 0.74% during mid-day trading on Wednesday, hitting $55.19. The stock had a trading volume of 490,494 shares. AGCO Corp. has a 1-year low of $47.29 and a 1-year high of $64.60. The stock has a 50-day moving average of $57. and a 200-day moving average of $58.20. The company has a market cap of $5.373 billion and a price-to-earnings ratio of 9.82.
AGCO Corp. (NASDAQ:AGCO) last posted its quarterly earnings results on Tuesday, October 29th. The company reported $1.27 earnings per share (EPS) for the quarter, meeting the consensus estimate of $1.27. The company had revenue of $2.50 billion for the quarter, compared to the consensus estimate of $2.52 billion. During the same quarter in the previous year, the company posted $0.96 earnings per share. The company’s revenue for the quarter was up 7.9% on a year-over-year basis. On average, analysts predict that AGCO Corp. will post $5.95 earnings per share for the current fiscal year.
A number of other analysts have also recently weighed in on AGCO. Analysts at JPMorgan Chase & Co. downgraded shares of AGCO Corp. from a “neutral” rating to an “underweight” rating in a research note to investors on Thursday, January 16th. Separately, analysts at Goldman Sachs Group Inc. cut their EPS estimates on shares of AGCO Corp. in a research note on Wednesday. They now have a “conviction-buy” rating and a $57.00 price target on the stock. They noted that the move was a valuation call. Finally, analysts at BMO Capital Markets cut their price target on shares of AGCO Corp. from $66.00 to $65.00 in a research note to investors on Wednesday, December 18th. Four investment analysts have rated the stock with a sell rating, four have assigned a hold rating, four have assigned a buy rating and one has given a strong buy rating to the company. The stock currently has a consensus rating of “Hold” and a consensus target price of $64.10.
AGCO Corporation (NASDAQ:AGCO) is a manufacturer and distributor of agricultural equipment and related replacement parts globally.
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