J.P. Morgan Reiterates Neutral on Deere & Company After Meetings with New CFO
In a report published Wednesday, J.P. Morgan reiterated its Neutral rating and $91.00 price target on Deere & Company (NYSE: DE).
J.P. Morgan noted, “DE hosted individual sell-side meetings with its (new) CFO Raj Kalathur today in NYC. Raj has worked at DE for 16 years and spent most of his career in operations in both business leadership as well as finance roles both domestically as well as in international locations. We focused our discussions with the CFO around DE's investments in organic growth as its capital spending to deprecation ratio is running well over 1.0x; and has been above 1.0x since 2005. Overall, management teams are focused on those investments deemed necessary for the company to achieve its 2018 target of $50B of revenues. We remain Neutral on the stock for now as U.S. farm cash receipts have likely peaked and we expect DE's stock price to be range bound with little chance of multiple expansion.”
Deere & Company closed on Tuesday at $90.11.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.