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Fly News Breaks for November 12, 2019
Nov 12, 2019 | 09:31 EDT
Cleveland Research analyst Adam Uhlman said feedback from his survey of North America ag equipment dealers was weak and that farmer and dealer sentiment has remained negative in the near-term. He lowered his estimates on Deere based on the checks, but said he still likes the story over the long-term. Uhlman has a Neutral rating on Deere shares.
News For DE From the Last 2 Days
Dec 6, 2019 | 08:49 EST
Jefferies analyst Stephen Volkmann said farmers have historically been slow adopters of technology, but the combination of demonstrated performance and continued improvement in "Precision Ag" technology has created an inflection point that will accelerate adoption over the next two to three years. Given his expectations for increasing Precision Ag penetration, modest replacement demand and positive pricing, he believes that North Amercian ag markets are "on the cusp of an upgrade cycle that will last for several years," Volkmann tells investors. Given that view on the market, Volkmann added that he thinks his above-consensus forecast for 10% earnings CAGR through 2022 for Deere still has upside potential if the company reaches its 15% EBIT margin target. The analyst keeps a Buy rating and $190 price target on Deere shares.