AGCO Corporation (NYSE: AGCO) — This manufacturer and distributer of agricultural equipment operates in more than 140 countries and could benefit from higher agricultural prices and increased worldwide demand for grain and food products.
Q1 earnings of 81 cents beat analysts’ estimates by a wide margin, as AGCO more than doubled its earnings from the prior year-ago quarter. S&P has a “four-star buy” on AGCO with a recently revised 12-month target of $80, up from $66, and Zacks has the stock rated as “outperform.”
AGCO broke from a bear market in March 2009, and has since quadrupled in price. Technically, the stock has a broad depth of support from $50 to $56 having recently pulled back from a high at $60. It currently rests on its 50-day moving average.
Our trading target for AGCO is $80. And long-term buyers may reap a much greater reward.
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