UBS Securities Reiterates Sell Rating, $72 PT on Deere & Company as Replacement Demand is Now Fully Harvested

In a report published Friday, UBS Securities analyst Steven Fisher reiterated a Sell rating and $72.00 price target on

. In the report, UBS Securities noted, “We believe that the key risk to the ag equipment manufacturers is farmers' option to delay the replacement of equipment, with corn prices down 48% from the 2012 peak. We have assessed recent trends in high-horsepower equipment demand and conclude that the prior five-year period's sales represent seven years of normalized replacement demand, implying farmers can essentially afford to take two years off before replacing current equipment. Moreover, end customers we have spoken to have conveyed reduced appetite for equipment purchases next year.” Deere & Company closed on Thursday at $84.28.