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Stockchase Opinions

David BurrowsAgco CorporationAGCOSTRONG BUYMar 22, 2002

15/20% growth at a 10% multiple.
$22.30

Stock price when the opinion was issued

$113.67

As of Jun 18, 2026. Market Open.

machinery
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TOP PICK

Farm equipment manufacturer. Smaller competitor to DE, which he also owns. Trades around 9x next year's expected earnings. Reasonable debt. Expanding footprint. 58% of revenue comes from Europe, and this has weighed on stock, but it will pass. Farm prices are rising. Tech-enhanced equipment increases crop yields. Yield is 0.81%.

(Analysts’ price target is $154.17)
BUY

Yesterday, they reported a strong earnings beat and beat sales, but they also reiterated their full-year forecast instead of raising it. 2023 could be another good year.

COMMENT
Has risen 440% return since the CEO started in 2004 vs. S&P's 230%. In early-November, they delivered a blow-out quarter. A bull market in agriculture helps. Can the momentum continue?
BUY

Great footprint in Latin America. Well-positioned and has great free cash flow. Accumulating market share away from John Deere and others.

DON'T BUY
Have done a very good job of consolidating the ice cube business. Was affected by poor weather in eastern states and southern Ontario. Would be more comfortable if more of their business was located in the south.
BUY
Has done well. Expects farm equipment to continue to do well but forestry and construction equipment to back off.