My Favourite Value Stock: AGCO Corporation
Thomas Clark • 28 Comments
Thomas Clark • 28 Comments
The Reward Far Outweighs The Risk At AGCO
Bryan Wagman • 18 Comments
Bryan Wagman • 18 Comments
Fri, Jun. 3, 12:19 PM
- Deere (DE +1.6%) moves higher after Goldman Sachs upgrades shares to Buy from Neutral with a $105 price target, raised from $87, as the firm sees significant upside to the mid-cycle as crop inventories tighten.
- Analyst Jerry Revich says he now prefers the ag machinery group to truck and construction machinery, given that high horsepower farm equipment is at a 30-plus year trough and improving U.S. row crop commodity demand could outstrip supply in 2017-18 due to rising feed and export demand for the first time in the soft commodity inventory cycle.
- The firm raises DE's mid-cycle EPS estimate to $7.50 from $6.25, “driven by higher operating leverage due to R&D and overhead leverage.”
- Today's upgrade is the latest of a flurry of analyst love for DE in recent days (I, II).
- Other farm equipment stocks also are higher, including CNHI +4.5%, AGCO +1.7%, LNN +1.2%.
Thu, Apr. 28, 3:52 PM
Wed, Apr. 27, 8:10 AM
Tue, Apr. 26, 5:30 PM
- ACCO, AGCO, ANTM, AOS, AVY, BA, BEN, BGCP, BHI, BOKF, BSX, CFR, CMCSA, CSL, DHX, DPS, DX, EVER, EVR, FDML, FI, GCI, GD, GIB, GPI, GRA, GRMN, GT, HES, HLT, IART, IP, JLL, LDOS, LEA, LLL, LRN, MDLZ, MKTX, MVIS, NAP, NDAQ, NEO, NMR, NOC, NS, OC, OSIS, PB, RDN, RES, ROK, ROL, SAIA, SC, SIX, SLAB, SLGN, SMED, SO, SONS, STM, STNG, STT, SUP, SXC, TGNA, TKR, TPH, UMC, UTX, VLY, WEX, WOOF
Tue, Apr. 19, 5:39 PM
Tue, Apr. 19, 2:49 PM
- Cliff Robbins of "friendly activist" hedge fund Blue Harbor tells CNBC his stake in AGCO Corporation (AGCO +3.4%) is up to 8%. It's an oligopoly-type business, and underlevered, he says, and can lift EPS up to $5-$6.
- Now read: AGCO Corp.: Cyclical Downturn In Farm Incomes Creates A Buying Opportunity
Wed, Apr. 13, 2:24 PM
- Investors should take profits on machinery stocks ahead of earnings, J.P. Morgan analysts say, as valuations are stretched after the sector outperformed the S&P in Q1 +17% vs. +1.3%, and investors likely will have little tolerance for weaker than expected performance.
- The firm suggests avoiding Deere (DE +1.9%), Agco (AGCO +3.5%) and CNH Industrial (CNHI +3%) on weaker fundamentals with downside risk to the market outlooks for each region, and Paccar (PCAR +2.9%) on weaker NAFTA HD truck demand vs. its guide for a 12% decline in U.S. and Canada retail sales.
- However, JPM likes Allison Transmission (ALSN +2.4%) heading into Q1 as it has underperformed peers while its exposure to HD Class 8 long haul is limited and MD orders are up 5% YTD.
- Rated Neutral CAT, MTW, JOY, NAV, TEX, MCRN, PH, KMT, ETN, ITW.
Wed, Mar. 30, 9:53 AM
- BMO Capital has raised its price target on (AGCO +0.3%) to $49 from $43, while maintaining its Market Perform rating.
- "We continue to be impressed with how well AGCO management has executed during the downturn, with a strong focus on driving permanent cost savings and operating efficiencies."
- "We remain convinced that peak EPS power in the next cycle should well exceed the prior high of $6 (in 2013), though we want to remain patient until further signs of a bottom emerge before becoming more constructive with the shares."
Wed, Mar. 2, 6:37 PM
- Machinery stocks such as Terex (NYSE:TEX), Caterpillar (NYSE:CAT), Deere (NYSE:DE), Cummins (NYSE:CMI), Joy Global (NYSE:JOY) and Manitowoc (NYSE:MTW) may have come too far too fast, J.P. Morgan analyst Ann Duignan asserts.
- Duignan notes that at year-end 2015, the firm's machinery coverage was trading at a P/E multiple of ~14x estimated 2016 earnings, but at March 1, the group was trading at 16.3x; in terms of total shareholder returns, the group was up 5.5%, outperforming the S&P 500's YTD 2.8% loss.
- Within construction stocks, TEX (+25.9%), CMI (+15.1%), MTW (+5.3%) and CAT (+3.0%) have outperformed while Oshkosh (NYSE:OSK) (-9.2%) has underperformed; in agriculture machinery, Agco (NYSE:AGCO) (+11.1%), Deere (+6.3%) and CNH Industrial (NYSE:CNHI) (-2.2%) have outperformed, while JOY (+5.9%) has outperformed in the mining equipment group.
Tue, Feb. 2, 8:27 AM
- Adjusted net income of $67.5M, or $0.80 per diluted share vs. $107.9M, or $1.18 in the same quarter a year ago.
- Sales by region: North America -18.9%; EMEA +0.9%; South America -33.9%; Asia/Pacific -4.5%.
- "Softer industry demand for farm equipment across all regions and the unfavorable effects of foreign currency translation are expected to negatively impact AGCO's sales and earnings for 2016," the company said in a statement.
- Full-year earnings per share are expected to total $2.30 on net sales of $7B.
- AGCO +0.5% premarket
- Q4 results
Tue, Feb. 2, 8:13 AM
Mon, Feb. 1, 5:30 PM
Thu, Jan. 28, 10:19 AM
Dec. 15, 2015, 10:38 AM
- Comments from AGCO's (AGCO -6.3%) presentation this morning: FY16 production down 3%-5%; Sales down ~7% to ~$7B; FY16 adjusted EPS of ~$2.30 (consensus $2.92); Capex ~flat vs 2015; Free cash flow of $150M-$175M; Remainder of $500M buyback program to be completed in 2016.
Oct. 28, 2015, 9:16 AM
- Adjusted net income of $67.1M, or $0.77 per diluted share vs. $66.9M, or $0.71 in the same quarter a year ago.
- Sales by region: North America -3.7%; Europe/Africa/Middle East +3.7%; South America -23.8%; Asia/Pacific -3.8%.
- Share repurchase program reduced outstanding shares by 3.5M during the quarter.
- The company is increasing its full-year 2015 earnings per share guidance to $3.20 (from approximately $3.10), on revenues of $7.5B-$7.6B.
- AGCO +2.5% premarket
- Q3 results
Oct. 28, 2015, 8:09 AM
- AGCO (NYSE:AGCO): Q3 EPS of $0.77 beats by $0.27.
- Revenue of $1.74B (-19.1% Y/Y) beats by $10M.
AGCO Corp. engages in global manufacturing and distribution of agricultural equipment and related replacement parts. It designs, manufactures and distributes grain storage, handling equipment and protein production systems. The company also provides retail financing through its retail finance... More
Sector: Industrial Goods
Industry: Farm & Construction Machinery
Country: United States
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