Morgan Stanley analyst Angel Castillo maintained a Sell rating on Agco on October 31 and set a price target of $97.00.
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Angel Castillo’s rating is based on a combination of factors that suggest caution regarding AGCO’s future performance. Despite AGCO’s third-quarter earnings per share (EPS) beating consensus estimates, they fell short of Morgan Stanley’s expectations. This discrepancy highlights potential challenges in meeting internal benchmarks, which could indicate underlying issues not fully addressed by the company.
Furthermore, while AGCO raised its full-year EPS guidance, the anticipated impact of tariffs and the timing of sales out of inventory suggest that the company may face significant headwinds in 2026. Additionally, although AGCO plans to initiate share repurchases, this move was largely expected by the market and may not provide the boost needed to counteract broader negative sentiment in the agricultural equipment sector. These factors collectively contribute to Castillo’s cautious outlook and the Sell rating on AGCO’s stock.
AGCO’s price has also changed moderately for the past six months – from $84.830 to $103.160, which is a 21.61% increase.