Macquarie: Bear Thesis On Deere 'Firing On All Cylinders'

Macquarie Research's Sameer Rathod reiterated Deere and Co. DE shares at Underperform with a price target of $82.25 Monday morning. The rating reiteration came after Deere reported earnings on Friday, beating Rathod's second-quarter EPS estimate of $1.36 by $0.21.

The Macquire analyst's more significant list of concerns with the company included:

• Continued top line pressure for agriculture
• Continued top line and pricing pressure for construction
• Weakening auction values for high horsepower trctors
• Weak 2H guidance outlook, cutting revenue from $1.3 billion to $1.2 billion
• The company's "appetite for buybacks going away"

To reflect these concerns, Macquire Research placed a FY17 revenue estimate at $25.102 billion.