Bernstein Analyst Maintains Hold Rating on Agco with $118 Price Target

Bernstein analyst Chad Dillard maintained a Hold rating on Agco with a price target of $118.00, while UBS's Steven Fisher also gave a Hold rating. Morgan Stanley, however, maintained a Sell rating. Agco's market cap is $8.18B and has a P/E ratio of 82.39. Corporate insider sentiment is negative, with 77 insiders selling shares in the past quarter.

AGCO Corporation (NYSE:AGCO), a leading manufacturer of agricultural equipment and precision farming technology, has reached a significant milestone in its operations. On July 1, 2025, the company finalized a long-awaited settlement with Tractors and Farm Equipment Limited (TAFE), ending a protracted commercial and legal dispute that had lasted over a year. The agreement saw TAFE repurchase AGCO’s 20.7% stake in the company for $260 million [1].

As part of the settlement, TAFE secured exclusive rights to the Massey Ferguson brand in India, Nepal, and Bhutan. This move untangles a complex web of joint ownership and brand licensing issues that had fueled tension between the two companies. The agreement also wiped the slate clean on all existing contracts and lawsuits between the parties, effectively ending their governance entanglement. TAFE will retain a passive 16.3% stake in AGCO but is restricted from increasing that position and is required to vote in alignment with AGCO’s board on most matters. The agreement includes non-disparagement terms, sealing the truce [1].

This strategic reset for AGCO provides a clean separation from a tangled partnership in one of its largest potential markets. The company is a U.S.-based manufacturer with global brands like Massey Ferguson, Fendt, Valtra, and PTx. The resolution of the dispute with TAFE is a positive development for AGCO, as it allows the company to focus on its core operations and growth strategies.

Financial analysts have differing opinions on AGCO's stock. Bernstein analyst Chad Dillard maintained a Hold rating with a price target of $118.00, while UBS's Steven Fisher also gave a Hold rating. Morgan Stanley, however, maintained a Sell rating. AGCO's market cap stands at $8.18 billion, with a P/E ratio of 82.39. Corporate insider sentiment is negative, with 77 insiders selling shares in the past quarter [2].

While AGCO has shown potential as an investment, certain AI stocks are seen as offering greater upside potential and carrying less downside risk. Investors should consider these factors when making investment decisions.

References:
[1] https://finance.yahoo.com/news/agco-cuts-ties-tafe-260m-162521868.html
[2] https://finance.yahoo.com/news/agco-corporation-resolves-dispute-tafe-260m-162521868.html