UPDATE: Morgan Stanley Initiates Coverage on Deere & Company with Underweight Rating, $72 PT on Negative Outlook

In a report published Thursday, Morgan Stanley analyst Nicole DeBlase initiated coverage on

with an Underweight rating and $72.00 price target. In the report, Morgan Stanley noted, “We forecast 8% downside to 2014e consensus, as we are concerned about recent deterioration in the used equipment market, augmented by a negative margin mix shift, as evidenced by our proprietary survey work. Our $72 PT implies 14% downside, and we project a 2-to-1 negative risk/reward ratio.” Deere & Company closed on Wednesday at $84.48.