What Do Wall Street Analysts Think about Deere?



Analysts’ recommendations 

The consensus rating among Bloomberg-listed analysts covering agriculture (DBA) equipment player Deere & Company (DE) has leaned more towards a “neutral” rating since the beginning of 2016. In January, six analysts each had “buy” and “sell” ratings on the stock, while the remaining analysts had “neutral” ratings.

Before the 2Q16 earnings results in May 2016, among the 23 analysts, five analysts had a “buy” rating, six analysts had a “sell” rating, and the remaining 12 analysts had a “neutral” rating on the stock. On August 12, before Deere’s 3Q16 earnings, the ratings are slightly more extreme. Eight analysts each maintained a “buy” and “sell” rating and the remaining seven analysts kept a “neutral” stance on the stock.

The average 12-month target price of the stock increased marginally from $77.3 in January to $78.05 on August 12, 2016. The stock closed at $77.99 on August 11, 2016.

Article continues below advertisement

Notable target price changes after Deere’s 2Q16 results

Several analysts at major investment banks (IYG) revised their targets for Deere since its 2Q16 results in May. Goldman Sachs (GS) listed a target of $87 on April 24. It revised its target to $105 on June 2 and maintained it until now. Barclays (BCS) has an “underweight” rating on the stock. It maintained its target of $63 since April 13.

Among notable upward revisions, Morgan Stanley (MS) increased its target for Deere by $3 to $70 on July 15. However, Morgan Stanley maintained its “underweight” rating even though the stock trades considerably higher than its target price.


More From Market Realist