UPDATE: Piper Jaffray Reiterates Neutral Rating, Lowers PT on Deere & Company Following Trimmed 4Q Estimates

In a report published Thursday, Piper Jaffray analyst Michael E. Cox reiterated a Neutral rating on

, but lowered the price target $89.00 to $86.00. In the report, Piper Jaffray noted, “Following another solid quarter from DE in which sales and EPS beat Street expectations, we are trimming our 4Q estimates and taking a more conservative approach to FY14. Order programs are largely in-line with last year, which is consistent with our recent channel checks – but we would note that much of the early order programs were completed prior to corn prices falling below $5 per bushel which we have found is a key psychological price level for farmers. Farm income & grain prices remain high by historical standards, but we are concerned that the recent moderation in these leading indicators, when combined with high used inventory levels and the potential expiration of favorable tax programs, will create a meaningful headwind in FY14. Our FY14 EPS estimate is lowered to $7.78 and we reduce our price target to $86. Maintain Neutral rating pending improved visibility into FY14 fundamentals.” Deere & Company closed on Wednesday at $82.34.