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Research Alert: CFRA Maintains Hold Opinion On Shares Of Agco Corporation

· 02/05/2021 12:47

05:45 PM EST, 02/05/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month target price to $130 from $92, valuing the shares at 18.0x our $7.23 estimate for 2021 (lifted from $5.24), lower than peers' forward average of 22.4x and AGCO's five-year forward average of 22.0x -- reflecting our outlook for slow North American recovery and AGCO's lack of exposure to construction equipment used for residential markets that are recovering most quickly. We start our 2022 EPS estimate at $7.85. AGCO posts Q4 EPS of $1.54 vs. $0.94, well above the consensus estimate for $1.12. Revenue rose 8.1% in Q4 as sales were up in all regions expect for North America (down 10.2%). In 2021, we see revenue growth of 11%-13% supported by increased demand for and investments in smart farming solutions and enhanced digital capabilities. We also see improvement in North America as our forecast for higher commodity prices will likely drive increasingly positive farmer sentiment and, as a result, increased demand for equipment.