Deere product updates
On September 7, Deere & Company (DE) announced the product updates for the 310L EP backhoe and the 210L EP tractor loader. Deere stated that these enhancements are expected to improve productivity and trim operating costs.
Both models are expected to feature the 69-horsepower Yanmar 3.3L interim Tier-4 diesel engine, which is in compliance with the EPA’s FT4 emission regulations. This engine choice is expected to help reduce maintenance costs, as it reduces the number of parts that must be maintained.
Deere & Company (DE) enhanced the loaders of its 210EP and 210L models by increasing the hydraulic pump flow, as well as by using larger diameter hoses and tubes. As a result, the loader lift time is reported to be 26.0% faster, and the capacity also increased by 18.0% from 5,342 pounds to 6,340 pounds.
Brian Hennings, marketing manager of backhoes and tractor loaders, John Deere Construction & Forestry, noted, “Our goal is to continue to support the ‘EP strategy’ and to offer an effective backhoe solution under the 56-kW power level, which allows for greater flexibility to meet emission regulations.”
Hennings continued, “This solution offers rental customers simpler technology, reduced maintenance requirements, greater reliability and a lower acquisition price.”
Deere stock update
During the holiday-shortened week, DE stock gained ~2.7% and closed at $143.78 for the week ended September 7. These gains helped DE stock trade above its 100-day moving average price of $144.36. However, it remains to be seen whether its stock can sustain these levels and show an uptrend. These gains indicate that its overall trend of 100-day moving average price is stabilizing.
Although Deere stock is still down 6.6% year-to-date, analysts are bullish on the stock. Analysts have recommended a target price of $176.80, which implies an upside of 19.8% based on its September 7 closing price.
DE’s peers Caterpillar (CAT), Agco (AGCO), and CNH Industrial (CNHI) have fallen 10.1%, 15.4%, and 14.5%, respectively. Deere’s 14-day RSI (relative strength index) score of 59 indicates that the stock is neither overbought nor oversold.
Investors can hold Deere indirectly through the iShares MSCI Global Agriculture Producers ETF (VEGI), which had 13.7% of its portfolio invested in Deere & Company on September 7.