Agco: JPMorgan maintains Overweight, lowers PT to $135 from $137.

Agco: JPMorgan maintains Overweight, lowers PT to $135 from $137.

September 02, 2025 — In a recent update, JPMorgan analysts have maintained their Overweight rating on AGCO Corp. (AGCO) while adjusting their price target to $135 from the previous $137. The analysts cited the company's strong performance in the agricultural equipment sector, driven by increasing replacement demand for old equipment and investments in precision farming technology and smart farming solutions.

AGCO has been focusing on strategic transformation, integrating its precision agriculture technology from Precision Planting and its recent joint venture with PTx Trimble. This move aims to facilitate the company's rapid growth in technology transformation and provide seamless, compatible, and powerful precision ag solutions. The company's cost-control measures and planned mitigation actions to negate tariff impacts have also driven margin expansion over the past few quarters.

The analysts noted that the agricultural machinery market is forecast to reach $42.05 billion in 2025 and grow to $57.08 billion in 2030, with a compound annual growth rate (CAGR) of 6.3%. Despite the ongoing volatility in commodity prices and lower crop receipts, agricultural equipment demand is expected to continue growing due to increased global demand for food, stemming from population growth and an increasing proportion of the population aspiring for better living standards.

AGCO's shares have gained 25.9% in the past year, and the company has an estimated long-term earnings growth rate of 13.1%. The consensus estimate for AGCO’s 2025 earnings has moved up 14% in the past 60 days.

References:
[1] https://www.nasdaq.com/articles/zacks-industry-outlook-highlights-cnh-industrial-agco-and-lindsay