William L. Moore
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Argus Elevates Deere Price Target To $98, Expecting Margins To Rebound

Argus raised its price target on Deere & Company  shares by $8 to $98, as it projects a margin rebound in the next 2-3 years.

The brokerage, which has the stock in its Focus List and rates it Buy, said Deere's earnings have been steadily declining for several quarters due to currency and commodity headwinds. Argus says both currency and commodities trends may be near inflection points.

"[W]e think margins are near all-time lows and expect them to rebound over the next 2-3 years as conditions improve. This well-managed company's stock is now trading near attractive valuation levels given the depressed industry backdrop," analyst John Eade wrote in a note.

Deere reported better-than-expected quarterly EPS of $1.55. However, the company expects FY16 sales to decline 10 percent, slightly less than its previous forecast.