On Friday, Raymond James made a significant adjustment to its outlook on shares of AG Growth International Inc (AFN:CN) (OTC:AGGZF), downgrading the stock from Outperform to Market Perform and reducing the price target from Cdn$72.00 to Cdn$62.00. The revision reflects concerns over persistent challenges in the agriculture sector that are expected to affect the company's performance.
The firm pointed to several macroeconomic factors as the rationale behind the downgrade, including weak crop prices and a downturn in farmer income and sentiment. These elements are anticipated to have a direct impact on AG Growth International's financial projections.
AG Growth International, known for its global presence in the agricultural equipment market, has been facing increased pressure in its domestic portable business. According to Raymond James, this segment is particularly vulnerable due to high dealer inventories, which could signal a slowdown in sales.
While the long-term strategy and international commercial portfolio of AG Growth International continue to be held in high regard, the firm's analyst expressed growing concern for the near to medium-term obstacles that could hinder the company's domestic performance.
Raymond James will maintain its monitoring of AG Growth International, looking for any signs of change that could potentially alter the current assessment. The new price target and rating reflect a cautious stance on the company amid the mentioned economic headwinds.
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