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Deere: Analysts’ Recommendations and Target Prices

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Analysts’ recommendations

As of June 20, 2017, 22 analysts from different brokerage firms have been actively tracking Deere (DE) stock. It’s important to note that 36% of the analysts recommended a “buy,” 55% recommended a “hold,” and 9% recommended a “sell.”

Analysts’ consensus indicates that Deere’s 12-month target price is $130, which implies a potential return of 3.1% from the closing price of $126.04 as of June 20, 2017.

What most analysts are saying

After Deere’s stellar fiscal 2Q17 earnings beat analysts’ expectations, an upward revision in its earnings from $1.5 billion to $2.0 billion would have influenced most analysts to recommend a “hold” on the stock.

Target prices

Below are the recommended target prices for Deere from well-known brokerage firms:

  • Barclays (BCS) rated Deere as “underweight” with a target price of $100, which implies a 12-month return of -20.0% based on the closing price of $126.04 as of June 20, 2017.
  • Jefferies rated Deere as a “hold” with a target price of $125. However, the stock is already trading 0.8% above the recommended target price.
  • J.P. Morgan (JPM) rated Deere as “neutral” with a target price of $122. The stock is trading 3.3% above the recommended target price.
  • BMO Capital provided Deere with a target price of $140, which implies a 12-month potential return of 11.10% over the closing price of $126.04 as of June 20, 2017.

To hold Deere indirectly, you can invest in the First Trust Indxx Global Agriculture ETF (FTAG), which has invested 5.5% in Deere. The fund’s other top holdings include Dow Chemical (DOW) and DuPont (DD) with weights of 10.7% and 10.9%, respectively, as of June 20, 2017.

In the next part, we’ll discuss Deere’s latest valuation.

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