Agriculture Equipment Likely to Lose Demand in 2014, According To Wells Fargo Analyst
Andrew Casey, an analyst at Wells Fargo, is growing more and more bearish on agriculture equipment next year, based on a likely decrease in cash flow among farmers.
Casey went on to say that he believes commodity prices will come down in price soon too, specifically citing that corn may be closer to $4.25/bu, rather the current $7/bu that it is now.
Because of the expected lower demand, Deere (NYSE: DE) has been slashed to underperform from market perform with a price target of $72-75 from $90-93. AGCO Corp. (NYSE: AGCO) was also cut to underperform from market perform and had its price target lowered to $40-43 from $51-54.
Both Deere and AGCO Corp. are positive on the year, up 4.8 percent and 8.1 percent, respectively.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.