Overview
Truist Securities has increased its 12-month price target on AGCO Corporation to $152.00 from $134.00 while maintaining a Buy rating on the agricultural equipment manufacturer. The move reflects the firms view of the company's recent operating performance and cash-generation profile as reported for the fourth quarter and full fiscal year.
Share performance and market context
Trading activity has tracked higher alongside the news flow. InvestingPro data cited by market observers shows AGCO shares trading close to their 52-week high of $132.89, with a one-week return of 15.61% and year-to-date gains of 27.08%.
On Monday AGCO stock closed up 2%, outpacing the S&P 500 which fell 1% that day, as investors reacted to the company's quarterly results that beat consensus on adjusted earnings per share.
Fourth-quarter results and 2026 guidance
AGCO reported fourth-quarter adjusted EPS of $2.17, ahead of the $1.87 consensus estimate. Revenue for the quarter was $2.9 billion versus an expected $2.67 billion. Management has guided fiscal year 2026 adjusted EPS to increase about 9% year-over-year at the midpoint of the range provided.
Cash flow and inventory trends
Operating cash flow stood out in the companys reported results, with $764 million generated in the quarter. For the full year AGCO reported operating cash flow of $740 million, more than double the $297 million reported in fiscal 2024. The company also reported progress on dealer inventory reduction, with its Europe Middle East and Africa segment at four months of inventory.
Production outlook and regional demand
For 2026 AGCO expects overall production to be relatively flat. That outlook reflects an anticipated decline in North American production of about 10% that the company expects will be offset by modest increases in production in the Europe Middle East and Africa region and in South America. AGCO forecasts that North American large agricultural equipment industry sales will fall roughly 15%, while sales in other regions are expected to be flat to modestly higher.
Capital returns and shareholder payouts
The company repurchased $250 million of its stock in the fourth quarter under an existing $1 billion share-authorization program. With the TAFE resolution now behind the company, Truist Securities expects AGCO to deliver more consistent buybacks and to continue paying and increasing its dividend. InvestingPro data points out AGCO has paid dividends for 14 consecutive years, currently yielding 0.88% on a quarterly payment of $1.16 per share.
Other analyst activity
Oppenheimer also adjusted its view on AGCO, raising its price target to $132 from $128 while maintaining an Outperform rating. Oppenheimer highlighted AGCOs record global market share and strong pricing, noting the companys progress in reducing North American dealer inventories even as it described a weaker forward outlook.
Implications
The combination of a quarterly beat, strong cash generation and continued capital returns underpins Truists higher target and sustained Buy rating. These factors have contributed to recent positive momentum in the shares and informed other analysts updated valuations.
Note: This article reports on company-reported results and analyst actions as disclosed by the firms cited. It does not add or infer additional facts beyond those provided in the reported material.