Analyst recommendations for Deere
As of April 4, 2017, 22 brokerage firms were actively tracking Deere (DE) stock. About 36% of these analysts have recommended a “buy” for the stock, while 46% of the analysts have recommended a “hold,” and the remaining 18% have recommended a “sell” for the stock.
The analyst consensus indicates a 12-month target price of $108.42 for Deere. However, as of April 4, 2017, the stock is already trading above 1.0% of the recommended target price.
Most analysts recommend a “hold”
Deere’s projected 3% increase in its agriculture and turf equipment business, primarily driven by the expected growth in South America, might have persuaded most analysts to recommend a “hold” on the stock.
Recommendations and targets
Recommended target prices for Deere from some well-known brokerage firms are as follows:
- On February 23, 2017, UBS (UBS) set Deere’s target price as $112, which implies a 12-month return of 2.3% based on the closing price of $109.50 on April 4, 2017.
- On February 21, 2017, Goldman Sachs (GS) has rated Deere as a “buy” with a target price of $133, which implies a 12-month potential return of 21.5% based on the closing price of $109.50 as of April 4, 2017.
- On January 18, 2017, Deutsche Bank (DB) set Deere’s target price to $121, which implies a 12-month return of 10.5% based on the closing price of $109.50 as of April 4, 2017.
Investors can invest in the First Trust Index Global Agriculture ETF (FTAG) to hold Deere indirectly. The fund invests 4.4% of its holdings in Deere as of April 4, 2017.