Zacks Investment Research downgraded shares of AGCO Corporation (AGCO) from OUTPERFORM to NEUTRAL on February 22, 2013, with a target price of $53.00.
AGCO Corporation's fourth-quarter 2012 adjusted earnings were $0.99 per share, down 31% year over year. Revenues increased 7.4% to $2.7 billion, mainly driven by higher sales in South America and in the Asia Pacific region. The company remains committed to its plans of expanding its business in international markets. AGCO expects that elevated agricultural commodity prices in 2013 will support healthy farm income and sustain stable equipment demand. The company has also initiated a dividend payout and plans to repurchase shares. However, softness in demand for grain storage and protein production equipment, start-up issues at the Marktoberdorf plant in Germany, increased engineering expenses to meet Tier 4 requirements will weigh on its results in the near term. We have downgraded our recommendation on AGCO Corporation from Outperform to Neutral with a target price of $53.
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