Update on Deere’s new launches
On September 18, Deere announced the launch of the new L-series II and Wheeled Feller Bunchers. The new series has a simplified design and provides a more reliable solution. The new series maintained the productivity from the original line-up including hydraulic speed, large grapples, and weight distribution.
Brandon O’Neal, the product marketing manager of Deere’s Construction and Forestry segment, said, “With the new L-Series II machines, we wanted to build upon the best features of the original machines, while also simplifying the design to increase reliability. Listening to our customers, we reworked the machines, making significant improvements under the hood. The new L-Series II machines offer decreased downtime without any changes to power and productivity.”
Deere’s stock update
Deere remained strong with a gain of ~3.5% and closed at $152.81 for the week ending September 21. The gains helped Deere stock to trade 5.2% above its 100-day moving average price of $145.26. The gains indicate that Deere’s overall trend for the 100-day moving average price has started to increase after declining from the high of $150.0.
On a year-to-date basis, Deere is nearly on the positive side but still down by 2.4%. Analysts were still bullish on the stock. They cut Deere’s target price to $172.79, which implies a potential upside of 13.80% over the closing price of September 21. At the same time, investors need to be careful. Deere’s 14-day relative strength index is at 65, which suggests that it’s very close to being overbought.
Investors could hold Deere indirectly through the iShares MSCI Global Agriculture Producers ETF (VEGI). VEGI had 14% of its portfolio invested in Deere on September 21.