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Investing.com - BMO Capital raised its price target on AGCO Corporation (NYSE:AGCO) to $110.00 from $94.00 while maintaining a Market Perform rating. The stock currently trades at $120.57, near its 52-week high, with InvestingPro analysis suggesting the stock is slightly overvalued at current levels.
The price target increase follows AGCO’s second-quarter earnings beat, third-quarter guidance beat, and a boost to full-year guidance from approximately $4.25 to approximately $4.75-5.00. According to InvestingPro data, 4 analysts have recently revised their earnings estimates upward, with analyst targets ranging from $84 to $140 per share. Get access to 8 more exclusive InvestingPro Tips and comprehensive financial analysis with a subscription.
BMO Capital noted that while macroeconomic conditions have deteriorated slightly in Europe and North America, and tariff uncertainty remains, these factors are being offset by foreign exchange benefits and other positive elements.
The firm is now using approximately 23 times 2025 estimated earnings per share for its valuation, which it describes as a record-high trough multiple.
BMO Capital indicated that AGCO management’s initial view on 2026 appears positive despite the slightly weaker macro environment, though early order programs won’t begin for several weeks.
In other recent news, AGCO Corporation reported its second-quarter 2025 earnings, which exceeded analysts’ expectations. The company’s earnings per share (EPS) came in at $1.35, surpassing the forecasted $1.08. Additionally, AGCO reported revenue of $2.6 billion, which was higher than the anticipated $2.53 billion. These results indicate a positive performance for the company in this period. The earnings announcement was followed by a notable market reaction. The company’s financial results highlight its ability to outperform market projections. Analysts had anticipated lower figures, but AGCO’s results demonstrated stronger-than-expected financial health. This recent development underscores AGCO’s current position in the market.
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