Citigroup Raises PT on Deere & Company to $88
Citigroup has published a research report on Deere & Company (NYSE: DE) commenting on the company's outlook for 2012.
In the report, Citigroup writes, "Deere's forecast for 4% price realization, on top of the increased "volume" increase it will seek to accompany emissions product changes, is the main driver for the sizable net income boost they expect in 2012. The strong order patterns seen to date for 2012 (+30-35% in North America and significant growth in Europe) and tight allocations suggests they will be successful in achieving this goal. If sustained, these pricing actions will easily offset higher than anticipated raw material cost increases of ~$500M and IT4 cost increases of $475M, yielding record margin levels."
Citigroup maintains its Buy rating and has raised the price target from $83 to $88 on Deere & Company, which closed Wednesday at $74.72
