Will This Downgrade Hurt AGCO (AGCO) Stock Today?

NEW YORK (TheStreet) -- Shares of AGCO Corporation (AGCO) are down -1.58% to $56.40 in pre-market trading on Wednesday, after a ratings downgrade to "neutral" from "overweight" at Piper Jaffray.

The firm said it lowered its rating on the agricultural equipment manufacturer after it reported weak earnings for the 2014 first quarter.

AGCO said net income for the first quarter was $1.03 per share, compared to the $1.19 per share from the same quarter last year.

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The company reported a 2.9% decrease in net sales to $2.3 billion for the 2014 first quarter, compared to the $2.4 billion from the 2013 first quarter.

Separately, TheStreet Ratings team rates AGCO CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate AGCO CORP (AGCO) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

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