AG Growth International Inc (AFN:CA)
CIBC lowered its 12 month target price on AG Growth International to C$33 from C$58, following the company’s unexpected decision to withdraw its 2025 guidance. This move significantly reduces visibility into AG Growth’s forward earnings profile and raises concerns about the stability of demand across its agricultural equipment and infrastructure markets. The withdrawal suggests that management may be facing increased uncertainty tied to project timing, order flow, or global ag-market volatility, particularly as farmers and grain handlers remain cautious amid fluctuating commodity prices and tighter capital budgets.
CIBC noted that the absence of guidance forces analysts to adopt more conservative assumptions around revenue growth, EBITDA margins, and capital deployment, which directly impacts valuation. The firm also indicated that AG Growth’s exposure to international markets where currency volatility and uneven economic conditions persist, may further constrain near-term performance. As a result, CIBC applied a higher risk discount and reset its expectations for both earnings stability and cash-flow generation, prompting the sharp reduction in the target price.
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