AGCO (AGCO) Stock Forecast & Price Target

AGCO has demonstrated strong financial performance with an EME operating profit of $288.5 million and an operating margin of 15.2%, reflecting a year-over-year increase of 40 basis points, primarily driven by a favorable product mix in high horsepower tractors. The company has raised its mid-cycle adjusted operating margin target to 14–15% by 2029, indicating confidence in its strategic initiatives and market share expansion, particularly in the high horsepower and premium segments. Furthermore, AGCO aims to significantly enhance its e-commerce parts sales, projecting an increase from $130 million in 2023 to approximately $575 million by 2029, which supports a long-term positive outlook for its margins and overall financial health.

AGCO's financial outlook is negatively impacted by lower than expected sales and margins, particularly highlighted by the PTx Trimble sales performance, which suffered due to weaker industry volumes and dealer destocking. The company anticipates a decline in its adjusted operating margin, projecting a decrease from approximately 11.6% in 2023 to around 9.0% in 2024, with expectations for 2025 further illustrating a dip to 8.5–9%, significantly below previous targets. Additionally, AGCO's reported second quarter adjusted EPS of $2.53 fell short of both management guidance and market expectations, emphasizing ongoing challenges in achieving forecasted financial performance.