Agco price target lowered to $118 from $130 at Truist

Truist lowered the firm’s price target on Agco to $118 from $130 after its Q2 earnings miss but keeps a Buy rating on the shares. The company’s FY24 sales forecast was lowered by $1B to $12.5B, reflecting weaker demand in South America and North America and weaker pricing, but while the magnitude of the earnings outlook cut was greater than the market anticipated, it likely de-risks the 2024 guide, the analyst tells investors in a research note. Assuming the industry can stabilize price, Agco’s earnings in 2025 should benefit from savings associated with restructuring, less negative overhead absorption, and interest savings, the firm added.