JP Morgan Maintains Neutral, Raises PT to $55 on AGCO Corp

JP Morgan reiterates its Neutral rating on AGCO Corp AGCO and raises its price target to $55 from $50 per share following the company's analyst day that highlighted outlook and guidance for 2012 that appears conservative. JP Morgan says, "Management guided to 2012 revenues of ~$10.0B-$10.2B (from a 2011 range of $8.7-$8.8B), with ~3.5% of growth from pricing (including Tier 4i increases) and -5% impact from FX. AGCO also issued EPS guidance of $5.00, above consensus of $4.75. GSI is expected to contribute $0.45 to 2012 EPS, and is expected to have a positive mix impact on margins and its tax rate. This implies a relatively flat outlook from AGCO for the remaining business; though we believe this is conservative, given our outlook for global farmer incomes in 2012." AGCO closed at $40.31 per share on Friday.