Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Markets & Finance

Salomon Downgrades Deere to 'In-Line'


Salomon Smith Barney downgraded Deere & Co. (DE) to in-line.

Analyst David Raso says farm stocks have been the top sub-sector in machinery for the past year, but the catalyst needed to continue a strong outperformance is not developing, he says. Raso notes that while Deere has beaten its estimates in the past four quarters, continued strong earnings per share surprises are needed to bring fresh money into the stock.

Raso believes a recovery in domestic high horsepower (and higher margin) farm equipment is key to the continued upside, but his recent visits to trade shows and farmer conventions suggest the key spring selling season could be sluggish.

Raso cut the $2.84 earnings per share estimate to $2.39, vs. the $2.10-$2.50 guidance. He also cut his $59 tgt to $47.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus