UPDATE: UBS Upgrades Deere (DE) to Neutral

UBS upgraded Deere (NYSE: DE) from Sell to Neutral with a price target of $81 (prior $73). Analyst Steven Fisher said corn price risk is skewed to the upside.

"We are upgrading DE to Neutral, from Sell, because we think corn prices could rise over the next ~6 months, supporting DE stock. We continue to expect weak machinery demand in 2016, but this is already included in guidance. After 3 years of good crop production and steady use, ending inventories are elevated. While we expect a slight increase in 2016 corn acreage planted, we think there is downside risk to yields, which would cut materially into ending inventories. Corn prices have stabilized in recent months, despite some oversupply, highlighting resiliency in the market. Ultimately, we think there is more upside risk to prices than downside over the next ~6 months," said the analyst.

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 $76.27 yesterday.

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