The Duluth, GA-based company is a manufacturer and distributor of agricultural equipment and related replacement parts.
The higher price target comes after the firm met with the company's top management.
"We continue to be impressed with how well AGCO management has executed during the downturn, with a strong focus on driving permanent cost savings and operating efficiencies," BMO wrote in an analyst note.
"We remain convinced that peak earnings per share power in the next cycle should well exceed the prior high of $6 (in 2013), though we want to remain patient until further signs of a bottom emerge before becoming more constructive with the shares," the firm added.
Global agriculture fundamentals remain "quite stressed" and even in areas where farmers benefit from selling in U.S. dollars, such as key regions of Europe and Brazil, hurdles such as trade tariffs and financing are limiting farm equipment sales, BMO noted.
Shares of AGCO closed at $51.53 on Tuesday.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.
This is driven by multiple strengths, which should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks covered.
The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, solid stock price performance and largely solid financial position with reasonable debt levels by most measures.
The team believes its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: AGCO