As reported earlier, Evercore ISI analyst David Raso upgraded Deere (DE), Eaton (ETN), and Terex (TEX) to Outperform from In Line while adjusting their profit target to $187 from $166, $85 from $88, and $48 from $44 as part of his broader research note on Machinery stocks. Raso notes that the recent multiple compression in the sector has created an attractive entry point for these select names, while adding that the market's implied peak valuation in 2019 should actually be extended to 2021. The analyst further contends that "absolute industry volume" remains low, higher commodity prices relative to the rise in U.S. Treasury yields are a "positive" for the relative performance of the machinery sector, and that the market underestimates these companies' cash deployment power given the longer duration of the economic cycle. As part of his research note, the analyst also downgraded Parker Hannifin (PH) to In Line from Outperform and reduced his price target to $187 from $198, citing the company's reduced operating margin expectations and relatively higher valuation within its peer group.