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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
Sep 2016Deutsche BankInitiates Coverage onHold
Aug 2016Argus ResearchMaintainsBuy
Aug 2016Piper JaffrayMaintainsUnderweight

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Posted-In: David Raso ISIAnalyst Color Analyst Ratings

 

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