AGCO Corp. (AG) shares rose after Morgan Stanley upgraded them to outperform from neutral.
Analyst Stephen Volkmann says AG has performed strongly, rising 35% year to date on improving cash flow, hopes for improvement in the farm sector, and cost savings opportunities. He sees another 30% upside; he says cost savings and new distribution opportunities could push EPS up to $3.00 by 2004.
He maintains his EPS estimates of $1.00 in 2002, $1.75 in 2003, and $2.50 in 2004. He has a $28 price target.