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UBS Securities Reiterates on Deere & Company as Replacement Demand is Now Fully Harvested

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In a report published Friday, UBS Securities analyst Steven Fisher reiterated a Sell rating and $72.00 price target on Deere & Company (NYSE: DE).

In the report, UBS Securities noted, “We believe that the key risk to the ag equipment manufacturers is farmers' option to delay the replacement of equipment, with corn prices down 48% from the 2012 peak. We have assessed recent trends in high-horsepower equipment demand and conclude that the prior five-year period's sales represent seven years of normalized replacement demand, implying farmers can essentially afford to take two years off before replacing current equipment. Moreover, end customers we have spoken to have conveyed reduced appetite for equipment purchases next year.”

Deere & Company closed on Thursday at $84.28.

Latest Ratings for DE

DateFirmActionFromTo
Oct 2014CitigroupMaintainsBuy
Oct 2014Bank of AmericaDowngradesNeutralUnderperform
Sep 2014Credit SuisseMaintainsOutperform

View More Analyst Ratings for DE
View the Latest Analyst Ratings

Posted-In: Steven Fisher UBS SecuritiesAnalyst Color Reiteration Analyst Ratings

 

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