Piper Jaffray Remains Underweight on Deere & Co. (DE) Following Investor Event

Piper Jaffray reiterated an Underweight rating and $70.00 price target on Deere & Co. (NYSE: DE) after meeting with management at an investor event on Monday. Management did not provide any additional insight into FY17, but gave more information around the areas the expected $500M of cost savings will come from over the next two years.

Analyst Brett Wong commented, "We come away with continued caution for shares of DE following Monday’s investor event leading into the Farm Progress show this week, where management clarified some confusion still lingering from the 3Q call as well as provided a detailed look into Deere’s precision offering. Management did not provide any additional insight into FY17, but gave more color around the areas the expected $500M of cost savings will come from over the next two years, focused on improving efficiencies to structurally remove costs. DE also spoke to the ongoing used inventory issues although expects minimal impact to FINCO near-term, while also reiterated a down planter order book, albeit early. Although the difficult backdrop continues to impact farmer appetite to invest in new offerings, DE remains focused on building out new technologies still oriented around connectivity and integrating available offerings on the Deere platform. Remain Underweight with $70 target."

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 $86.93 yesterday.

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