UPDATE: Deere Holding Up in Weak Tape After ISI Upgrade
Shares of Deere (NYSE: DE) are holding up in a weak tape after ISI upgraded shares from Cautious to Neutral and raised the price target from $83 to $95.
While analyst David Raso is upgrading the stock, he trimmed the second quarter earnings per share estimate $0.27 to $2.33 (consensus $2.26).
The analyst visited Deere agriculture dealers and transportation contacts and found:
- “Shipment delays for the new emission model of Deere's highly profitable 8000 series tractors.”
- ”Overall weak orders for high hp equipment (down 15%-20% for sales into crop farmers).”
- ”Recent crop price rally not yet helping demand.”
- ”problematic used equipment inventory of late model equipment.”
Raso sees a “sustainable rally in crop prices amid heavily negative agriculture investor sentiment/a crowded short.”
The shares are flat in Thursday's trading.
Latest Ratings for DE
|Jun 2016||Goldman Sachs||Upgrades||Neutral||Buy|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.