Ag Growth International Inc T.AFN

RE:BNN TOP PICK

[Possibleidiot01]

TOP PICK

Ag Growth International Inc(AFN-T)

28/03/2022 at 08:00pm

 

It's a safe agriculture play. They just announced record sales and are guiding to a 14% increase in EBITDA this year. The North American farm equipment business is strong. Operations in Brazil, India and eastern Europe are also strong, they have only 3% of their business in Ukraine and Russia, which is not a worry. Though shares are up 35% this year, the valuation remains very low at 8x EBITDA. A core holding of his. (Analysts’ price target is $51.22)

machinery

$43.320

Owned

AG Growth International (AFN TSX)

Here’s a great way to play growth in global agriculture. AG Growth is a leading manufacturer of grain handling equipment and storage for the agriculture industry. The company recently announced record results of $1.2 billion in sales and record EBITDA of $176 million. They also have a record backlog and have provided guidance for EBITDA of over $200 million up 14 per cent. North American farm equipment demand is very strong as is their international business in Brazil, India and Eastern Europe as these regions are investing heavily to upgrade their farming infrastructure. This is a great way to play the global agriculture sector without taking commodity risk. While the stock is up 35 per cent this year, it still trades at a very cheap 8X 2022 EBITDA. We also think that AG Growth would make a great take out candidate for AGCO, a large U.S. competitor.