Update shared on 25 Nov 2025
Fair value Increased 0.073%AGCO's analyst price target has seen a marginal increase of less than $1 to approximately $119.86. Analysts cite improved agriculture inventories and stabilization in sector expectations, despite persisting tariff-related risks.
Analyst Commentary
Recent research notes and price target updates reflect a mixed outlook for AGCO as analysts weigh sector stabilization against lingering tariff concerns and evolving industry headwinds. Below, we break down the main themes emerging in current analyst commentary.
Bullish Takeaways- Bullish analysts note that AGCO is benefitting from improving inventories across agriculture, which supports stabilization and visibility in its core markets.
- The company's strategic push in aftermarket and precision agriculture segments is seen as a valuable growth lever. This positions it well for long-term sector trends.
- Some analysts highlight AGCO's current valuation as balanced and offering mid-cycle appeal for investors seeking exposure without excessive premium risk.
- Despite broader sector challenges, certain analysts maintain positive ratings and recognize potential opportunities for relative outperformance as expectations have declined for industry peers.
- Bearish analysts express caution around tariff-related risks, particularly those stemming from increased steel and aluminum tariffs. These could pressure margins and raise equipment costs.
- There is a preference among some experts for construction machinery stocks over AGCO’s agriculture focus at this point in the business cycle, with a view that risk-reward is better elsewhere.
- Recent reductions in price targets reflect concerns over heightened commodity input costs and the broader economic impact of changes in trade policy.
- Updated earnings forecasts anticipate that additional country-specific tariffs and elevated input prices present ongoing headwinds for AGCO and its industry peers.
What's in the News
- AGCO completed a buyback tranche, repurchasing 2,719,690 shares, representing 3.62% of shares outstanding for $265 million. This was part of the buyback announced on December 13, 2019 (Key Developments).
- AGCO Power opened new production facilities in Linnavuori, Finland, investing EUR54 million to expand CVT component and CORE engine cylinder head manufacturing, as well as remanufactured engine capacity (Key Developments).
- The Linnavuori facility, Finland's largest transmission gear manufacturing site by volume, added 5,600 square meters of new production space to support AGCO’s leading tractor brands: Fendt, Massey Ferguson, and Valtra (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has risen slightly, moving from $119.77 to $119.86.
- Discount Rate has decreased modestly, dropping from 9.31% to 9.26%.
- Revenue Growth projections have edged higher, rising from 4.52% to 4.55%.
- Net Profit Margin projections have contracted, moving from 7.34% to 7.29%.
- Future P/E ratio estimates have increased marginally, going from 13.75x to 13.81x.
Disclaimer
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