J.P. Morgan Remains Neutral With a Positive Bias On DE, AGCO, CNH
As we head into 2011, J.P. Morgan reports that the outlook for global agriculture is mixed.
“Globally, crop farmers are likely to do well on the back of lower supplies, higher prices and reasonable input costs,” J.P. Morgan writes. “However, the FAO food price index is nearing the high set in mid-2008, and the FAO recently reiterated that ‘he tightening of the overall situation as we go into 2011 means eventually even those basic food commodities that haven't risen so much could be influenced.'”
As a result, J.P. Morgan said that it remains remain Neutral with a positive bias on Ag Machinery names Deere & Company (NYSE: DE), which currently trades at $76.99; AGCO Corporation (NYSE: AGCO), which trades at $46.27; and CNH Global (NYSE: CNH), which trades at $42.72.
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