Goldman Sachs Sees 20% Upside For This Upgraded Industrial Stock

August 24, 2021 3:24 PM | 1 min read | Make a Comment

Goldman Sachs analyst Jerry Revich has upgraded AGCO Corporation's AGCO rating to Buy from Neutral, with a price target of $161, implying an upside of 19.18%.
Revich is positive on a "multi-year recovery" in long-cycle ag equipment demand and Agco's margin expansion opportunity in a recovery.
He mentions that the 17% share pullback has been driven by improved weather in the U.S., length of cycle, and supply chain concerns over the past three months.
Revich also adds that the tractors and combines represent the longest cycle machinery products in his coverage, with five-year residual values of 70% compared to 30%-50% for truck and construction machinery.
Price Action: AGCO shares are trading higher by 2.82% at $135.65 on the last check Tuesday.