Deere (DE): Concerns Overblown, Deutsche Bank Reiterates Buy
- Top 10 News for 9/15 - 9/19: Markets Welcome Alibaba IPO; New iPhone Sets Records; Fed Remains Accommodative
- Alibaba (BABA) IPO Lights Up Wall Street
- Stock Futures Higher as Scotland Votes Down Independence, Alibaba's (BABA) IPO Prices
- Telefónica S.A. (TEF), Vivendi (VIVHY) Agree to $9.3B Deal for Global Village Telecom
- Are Yahoo! (YHOO) Investors Ready to 'Sell the News'? Analyst Weighs In
Deutsche Bank maintained a Buy rating on Deere (NYSE: DE) with a price target of $110.00. Analyst Vishal Shah thinks concerns could be overblown and he sees upside to EPS estimates.
"We believe large ag equipment related concerns are overblown and see upside to DE's 2014 & 2015 cons EPS est. Our checks, bottoms up supply demand analysis of the sector, as well as breakdown of DE's earnings power suggests declines will not be as high. This is further supported by improving ag fundamentals including a recent strengthening of crop prices (corn & soy up 20% & 13% YTD vs DE of 1%). Cons est imply >20% YoY declines for large ag equipment in '14 & '15 vs DBe of 15-20% and ~10%, respectively. We believe cons will likely revise est upwards which should help the stock grind higher. We reiterate our constructive view on DE going into earnings," he said.
Shares of Deere closed at $92.77 yesterday.
You May Also Be Interested In
- UPDATE: KeyBanc Upgrades VF Corp. (VFC) to Buy
- Goldman Sachs Downgrades Express Inc. (EXPR) to Neutral
- Deutsche Bank Comments on Gains in Vertex (VRTX)
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View
Related EntitiesDeutsche Bank, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!