Wells Fargo Downgrades Deere (DE) to Underperform; Increasingly Bearish

March 20, 2013 7:18 AM EDT
Get Alerts DE Hot Sheet
Price: $105.02 -0.21%

Rating Summary:
    9 Buy, 11 Hold, 7 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 23 | Down: 34 | New: 34
Trade DE Now!
Join SI Premium – FREE
Wells Fargo downgraded Deere (NYSE: DE) from Market Perform to Underperform with a price target to $90-93 from $72-75 saying they have turned increasingly bearish on the outlook for F2014 and F2015 US large farm equipment demand, based on short- and longer-term commodity cycle views.

Analyst Andrew Casey states: "While we believe DE is a great company whose management we hold in high regard, we believe the stock can be pressured in two ways: (1) DE's stock price tends to be influenced by corn prices, which we expect will decline in an anticipated mean reversion crop and an exit from a once every 30-year price spike, and (2) with a bearish view of 2014 and 2015 equipment demand, we now expect substantial downward estimate revision potential."

The firm maintained FY2013 EPS estimate of $8.55 (consensus $8.54), decreased FY2014 estimate to $8.00 from $9.05 (consensus $8.99) and introduced FY2015 of $6.90 (consensus $9.89).

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 $90.57 yesterday.

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In

Related Categories

Analyst EPS Change, Analyst PT Change, Downgrades, Hot Downgrades

Related Entities

Wells Fargo

Add Your Comment