Trimble Could See Debt Reduction, Buyback Boost From AGCO Deal Proceeds, Analyst Upgrades Stock
Portfolio Pulse from Lekha Gupta
Raymond James analyst Brian Gesuale upgraded Trimble Inc (TRMB) to Outperform from Market Perform, maintaining a price target of $65. The upgrade follows Trimble's joint venture deal with AGCO Corp to sell 85% interest in its Ag assets and technologies portfolio for $2.0 billion. The deal is expected to reduce Trimble's debt and enable a buyback capacity of about $700 million. The analyst also raised adjusted EPS and revenue estimates for FY23 and FY24.
September 29, 2023 | 6:54 pm
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POSITIVE IMPACT
AGCO Corp's joint venture deal with Trimble is expected to bring future profits of around $1 billion through the 15% JV stake, 7-year supplier deal, and additional synergies.
The joint venture deal with Trimble is expected to bring AGCO Corp future profits of around $1 billion through the 15% JV stake, 7-year supplier deal, and additional synergies. This is likely to positively impact the stock price in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Trimble's joint venture deal with AGCO Corp is expected to reduce its debt and enable a buyback capacity of about $700 million, leading to an upgrade by Raymond James.
The joint venture deal with AGCO Corp is expected to significantly improve Trimble's financial position by reducing its debt and enabling a buyback capacity of about $700 million. This has led to an upgrade by Raymond James, which is likely to positively impact the stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100