AGCO's Stock Declines Amid Citi Downgrade and Lowered Guidance

Published 1 days agoAGCO

AGCO's Stock Declines Amid Citi Downgrade and Lowered Guidance

AGCO Corporation's stock has recently taken a hit following a downgrade by Citi, driven by concerns over the company's valuation. Citi cut the price target for AGCO from $108 to $102, although it maintained a 'Buy' rating. This revision was prompted by the company's disappointing second-quarter earnings and a larger-than-expected cut in its 2024 guidance.

AGCO has revised its 2024 sales forecast down from approximately $13.5 billion to around $12.5 billion. It also reduced its adjusted operating margin guidance to 9.0% from 11.3%, and lowered its adjusted earnings per share (EPS) estimate from $12.00 to about $8.00. Morgan Stanley also weighed in, downgrading AGCO's stock from 'Equal-weight' to 'Underweight' and slashing the price target to $75 from $94, citing potential earnings risks and higher-than-peer inventory levels.

As of the last trading day on May 31, AGCO's stock was priced at $97.98, marking a decline of $3.56 or 3.51% from the previous close, within a trading range of $97.55 to $100.61. These recent developments underscore the challenges AGCO is facing from reduced sales projections and tightening margins, leading to reevaluation by analysts like those at Citi, as reported by Investing.com.

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