Deere & Company Has Third-Best Day In 25 Years; Barclays Raises Target To $87

Deere & Company DE stock had its third-best day in 25 years after reporting strong Q3 earnings, easing concerns of an agricultural slowdown in the US.

While the news in Q2 was overwhelming negative surrounding the heavy machinery company, cost saving measures and improved margins contributed to the earnings beat despite a decline in revenues.

Barclays released a note explaining why Deere performed so well to close last week:

• Deere's CFO said the company expects to improve its Pre–Tax income by $500 million by the end of 2018. Barclays expects this $500 million in savings equates to $1.10 per share if fully realized.
• With large agriculture expected to be down in 2017, Barclays expects some volume offsets savings going into next year.
• Deere is seeing an increase in Brazil orders, as well as increased demand from China.

Barclays raised its price target to $87 from $80.

Deere's ability to beat low expectations and cost saving measures is boosting the stock to new highs. The company nearing 52 week highs today, up .75% at $87.96