Zacks Investment Research downgraded shares of AGCO Corporation (AGCO) from NEUTRAL to UNDERPERFORM on January 22, 2014, with a target price of $51.00.
We are downgrading our recommendation on AGCO from Neutral to Underperform, with a target price of $51. AGCO's third-quarter 2013 earnings increased 32% year over year to $1.27 per share. Total revenue also rose 8% year over year to $2.5 billion. However, the absence of current depreciation tax benefits in U.S. and potential FINAME borrowing cost increases in Brazil will hurt earnings. Despite improved results, AGCO reiterated its full-year 2013 earnings per share guidance of $6.00. In addition, margins will be affected by the rise in engineering expenses. Moreover, strong growth in South America and modest performance in North America are expected to be offset by moderate decline in Western Europe.
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