Thursday, May 1, 2014

Seeking Alpha: Is AGCO Corp. Washed Out Enough To Own?

The rise and fall of the agriculture equipment cycle has gotten plenty of attention, but I don't think it's all that widely appreciated that AGCO (AGCO) has done reasonably well over that cycle - beating Deere (DE) over the past two years and keeping pace over the last year (and beating CNH Industrial (CNHI)). More recently, it seems that some on the sell side have favored AGCO as a "better house in a bad neighborhood" play, but the company is still facing challenges, with share loss in Brazil and weaker relative margins, and AGCO's recent guidance was not particularly strong. The valuation on these shares does look interesting, but investors need to be aware that they're swimming against the tide right now.

Follow this link for more:
Is AGCO Corp. Washed Out Enough To Own?

No comments: