UPDATE: Piper Jaffray Upgrades AGCO on Multiple 2H13 Catalysts

In a report published Monday, Piper Jaffray analyst Michael E. Cox upgraded the rating on AGCO (NYSE: AGCO) from Neutral to Overweight, and raised the price target from $58.00 to $61.00.

In the report, Piper Jaffray noted, “We are upgrading shares of AGCO from Neutral to Overweight. We recommend rotating from DE to AGCO for the following reasons: (1) more direct exposure to the South America equipment market; (2) a 2H13 recovery in on-farm grain storage; (3) easy margin and weather-related comparisons in Europe in 2H13. As we combine these factors, we see several 2H13 catalysts that are specific to AGCO shares, against the broader Ag sector backdrop of valuation & fundamental headwinds stemming from lower grain prices. AGCO's limited exposure to large North America Ag will likely become a positive in FY14. We remain comfortable with our FY13 estimates, which are above consensus and toward the higher end of guidance. We are upping our FY14 estimates above consensus, and based on these revisions we are increasing our price target to $61.”

AGCO closed on Friday at $50.39.