Baird sees upside to Agco’s initial 2023 guidance

Baird analyst Mircea Dobre noted that Agco‘s analyst event included updated 2026 financial targets, the introduction of 2023 guidance and presentations highlighting precision ag and sustainability initiatives. The company’s 2023 sales guidance of about $14B is "well above" the $13.1B consensus forecast and 2023 EPS guidance of $13.50 is also above consensus of $12.81, but "implies little margin expansion," Dobre stated. He sees upside to the company’s outlook and raised his own EPS estimates for 2022 to $11.93 from $11.86 and for 2023 to $14.00 from $13.10, noted the analyst, who has an Outperform rating and $185 price target on Agco shares.