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Barclays Maintains an 'Overweight' on Deere (DE); Setup for Relatively Solid FY4Q and Outlook

November 22, 2011 2:33 PM EST
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Price: $385.31 --0%

Rating Summary:
    20 Buy, 17 Hold, 5 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 8 | Down: 5 | New: 36
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Barclays maintains an 'Overweight' on Deere (NYSE: DE) price target of $100.00.

Barclays analyst says, "We expect DE to report a relatively solid FY4Q and initiate FY12 earnings guidance on the conservative side of current consensus estimates. DE's stock has been a relative underperformer in the Machinery sector (up ~12% vs. the group up 21% and the S&P500 up 5% since 10/1/11), which suggests to us that the bar is set relatively low into the quarter largely due to concerns around continued pressure on Ag & Turf margins and North American combine inventory levels. While it seems prudent to us to be conservative in the near term given that it appears price/cost realization on some iT4 emission related costs has lagged a ramp-up in production, we still believe DE is best positioned over the medium/longer term to pass through pricing. We think next year Ag & Turf margins could enjoy some benefit as more recent equipment price increases begin to catch-up to higher emissions related production costs."

For an analyst ratings summary and ratings history on Deere click here. For more ratings news on Deere click here.

Shares of Deere closed at $72.68 yesterday.


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