UPDATE: BMO Maintains Outperform Rating on Deere Following Positive EPS Growth

BMO Capital Markets analyst Joel Tiss published a report on Deere DE and maintained an Outperform rating and maintained the price target of $110 on the company following a FY2Q EPS of $2.78, which beat their own estimate of $2.60.

In the report, BMO commented that, "Despite the record quarterly sales and net income, management was unable to quell investor fears that the North American ag cycle is reaching an inflection point, particularly with the characteristically conservative guide, leading to a sharp sell-off. However, with the shares now firmly below 10x our FY14 EPS estimate, and the company calling for mid-single-digit organic sales growth on a mix of pricing and volume, we struggle to find industrial names with a more attractive combination of low valuation and growth."

Deere is currently trading at $90.02