UPDATE: Goldman Sachs Downgrades Deere & Co. on Lower US Farm Income and Capex

In a report published on Friday morning, Goldman Sachs analysts downgraded Deere & Company

from Neutral to Sell rating, and lowered the price target to $85 following weak cyclical outlook. The report noted, "Recovering commodity inventories point to lower US farm income and capex. We forecast corn, soybean and wheat inventories to recover to historical average by the end of 2013, driving farmer realized price declines of 15-20% in 2014 from 2013 (based on corn price of $5.40). As a result, we forecast farmer sales declines of 10% and a 15% ag equipment capex cut." Deere & Company closed on Thursday at $89.39.