Deere & Company’s Future Looks Bright
November 27, 2009 9:49 AM
Jefferies & Company, Inc. today put a Buy rating for Deere & Company (NYSE: DE) and raised its price target from $60 to $62 after Deere’s fourth quarter results were in line with estimates. However, Deere’s outlook for the financial year 2010 is at the lower end of the analyst’s estimate as Deere expects an increase in costs.
Deere & Company reported free cash flows of $465 million in the fourth quarter of 2009 due to strong inventory reduction. For financial year 2010, Free cash flow is likely to be around $1 billion as compared to $636 million in FY09. As farmers are in good health and there is an increase in demand for high-end tractors, Deere could report higher equipment sales in 2010.
In the last trading session, shares of DE closed at $53.70. DE also made a 52-week high at $54.15 in the last trading session. Today, Deere is trading at $52.25, down 2.70% in the pre-market trading.
