AGCO should be avoided with no recovery in global tractor market, BofA says
Seeking Alpha
Published Oct 13, 2017 03:40PM ET
AGCO should be avoided with no recovery in global tractor market, BofA says
- AGCO (AGCO -4.1%) is sharply lower of BofA Merrill Lynch downgrades shares to Underperform from Neutral with a $70 price target, trimmed from $75, citing data that suggests the global tractor market recovery is not materializing.
- While AGCO expected flat Brazilian demand in H2 2017 following a sharp recovery in H1, BofA's Ross Gilardi says tractor sales in Brazil instead fell during Q3; also, recent tractor data from Europe, which accounts for 80% of AGCO's EBIT, is "incrementally weaker," and North America suffered a 14% decline in HHP tractor sales in September on top of a 2% drop in August.
- Gilardi notes AGCO shares were trading at an all-time high even as global tractor market data remained negative.
- Now read: X-Date Short Selling
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