Agco price target lowered to $155 from $180 at Wells Fargo

Wells Fargo lowered the firm’s price target on Agco to $155 from $180 and keeps an Overweight rating on the shares. The analyst now forecasts a 7% revenue decline in fiscal 2024 versus the firm’s prior expectation of flattish. The change reflects recent peer commentary and ongoing industry data points that point to more challenging 2024 equipment demand relative to prior expectations, the analyst tells investors in a research note. Still, Wells expects a more muted decline versus prior cycles, reflecting a more measured up-cycle, better farmer balance sheets and ongoing adoption of precision tech as farmers look to manage a more difficult environment. It views Agco shares as inexpensive at current levels.