Bank of America Raises EPS Estimates on Deere & Co

A report from Bank of America reiterates its Buy rating and $104 price target, raises its FY12/13 EPS estimates from $7.57/$8.59 to $8/$9.22, and establishes a FY14 EPS estimate of $10.33 on Deere & Co (NYSE: DE).

The report states, “DE reported strong EPS results for 4Q11 that came in ahead of our forecast and the consensus. DE's guidance of net income of $3.2bn (~$7.80 on our share count) was well ahead of the consensus of $7.13 and our forecast of $7.57. Key drivers of the positive outlook were North American ag market (+5-10%) strong '12 pricing (+4%), and the ability to offset IT4 costs.”

DE closed Wednesday at $74.72.