UPDATE: Goldman Sachs Downgrades AGCO Amid Further Risk to America's AG Equipment Capex

In a report published Monday, Goldman Sachs analyst Jerry Revich downgraded the rating on AGCO (NYSE: AGCO) from Neutral to Sell, and lowered the price target from $58.00 to $53.00.

In the report, Goldman Sachs noted, “We downgrade AGCO to Sell with 9% downside to our new $53, 12-month price target vs. 6% upside for our Machinery coverage. We are constructive on AGCO's cost improvement track record and opportunities for value-enhancing capital deployment, but for the first time in several years we see downside (11%) to consensus earnings expectations driven by the risk of weaker South America ag equipment capex where key row crop prices are expected to be down 13% in 2014E, in addition to weak capex in NA. Although sentiment on ag equipment is broadly negative, AGCO is up 18% YTD (vs. S&P +24%) and trading at 14.5x midcycle P/E (vs. 13.5x historically), driving unattractive risk-reward.”

AGCO closed on Friday at $58.03.