Piper Jaffray Cuts Price Target on Deere & Co. (DE) to $80 Following 3Q15 EPS Beat

Piper Jaffray reiterated a Neutral rating on Deere (NYSE: DE), and cut the price target to $80.00 (from $87.00), following the company's 3Q15 earnings report. DE reported higher than expected EPS of $1.53 compared to the Street at $1.44. Management will provide formal FY16 guidance in November.

Analyst Brett Wong, "We are lowering our FY15 and FY16 estimates following the unexpected preliminary bleak outlook DE provided on the 3Q earnings release, now expecting 2016 machinery demand to be down versus a potential recovery. Machinery demand continues to be soft and early-order programs have been slower than last year. The large potential US crop, where DE expects above trendline yields and declining cash receipts does not bode well for equipment demand and the farm machinery manufacturers. The weak demand is exacerbated by large amounts of used machinery inventories that will take time to work down. Management will provide formal FY16 guidance in November but we are lowering our price target to $80 and continue to echo caution on the farm machinery sector, while reiterating our Neutral rating on DE."

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 $83.29 yesterday.

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