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UPDATE: Deere Holding Up in Weak Tape After ISI Upgrade

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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

DateFirmActionFromTo
May 2015JP MorganDowngradesNeutralUnderweight
Feb 2015UBS
Feb 2015BarclaysMaintainsOverweight

View More Analyst Ratings for DE
View the Latest Analyst Ratings

Posted-In: David Raso ISIAnalyst Color Analyst Ratings

 

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