Jefferies Says Deere (DE) Playing Hand Well

November 23, 2012 9:19 AM EST Send to a Friend
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Price: $90.46 +0.01%

Rating Summary:
    5 Buy, 10 Hold, 9 Sell

Rating Trend: Up Up

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    Up: 11 | Down: 19 | New: 16
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Last week Deere & Co (NYSE: DE) reported Q4 earnings that missed estimates on earnings, though revenue was ahead of expectations. Looking forward, Deere sees flat sales in the North America and Europe, with growth in Latin America.

Commenting on developments, analyst Stephen Volkmann of Jefferies Research said, "We continue to believe that DE's core NA ag business is above trend, but likely to remain there as long as crop prices are elevated. But for us, BUY ratings tend to be focused where cycles have more significant pent up replacement demand."

"Still, DE is playing its hand well, in our view, investing in non-US growth to offset the somewhat peaky conditions here," added Volkmann. "For the near-term, these investments appear likely to limit upside, although we find DE's end market forecasts for Europe and Latin America (where there is pent up demand) to be conservative."

Jefferies has a Hold on Deere (NYSE: DE) with an updated price target of $80.00 (from $70.00).

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 $82.83 yesterday.

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