UPDATE: Piper Jaffray Downgrades Deere & Company to Neutral, Lowers PT on Expected Headwinds

In a report published Monday, Piper Jaffray analyst Michael E. Cox downgraded the rating on

from Overweight to Neutral, and lowered the price target from $102.00 to $89.00. In the report, Piper Jaffray noted, “We are downgrading DE shares to Neutral from Overweight and lowering our FY14 estimates as we believe persistent investor fears surrounding a slowdown in the U.S. farm equipment replacement cycle may finally come to fruition in 2014 with corn prices hovering at a key psychological price level and used combine inventory levels running much higher than year ago levels according to our dealer survey. Following a recent farm tour of the central cornbelt, we are incrementally more optimistic about this year's crop – should the USDA estimates be achieved, corn prices will likely stay below $5 per bushel. With DE shares underperforming this year and trading at 9x FY13 earnings, we see these fears as already embedded in the stock to some degree, though we are concerned that downward revisions to estimates will be the next overhang on the stock.” Deere & Company closed on Friday at $81.44.