Agco, Trimble joint venture ‘makes a lot of sense,’ says Baird

Baird analyst Mircea Dobre keeps an Outperform rating on Agco (AGCO) with a $155 price target after the company announced the establishment of a joint venture with Trimble (TRMB) through which Agco will acquire an 85% interest in Trimble’s portfolio of agriculture assets. The transaction “makes a lot of sense for both parties,” the analyst tells investors in a research note. The firm says the agreement catalyzes Agco’s internal tech stack while allowing Trimble shareholders to extract value from an ag market in which manufacturing strategies are “clearly changing.”