Shares of Deere & Company
Even with sales expected to decrease slightly in Q1 2017 following the trend of a cyclical downturn, the company has “more earnings power to come,” said Wells Fargo analyst Andrew Casey in a report published Friday. The analyst increased his 12–18-month valuation range to $120–$123 from $100–$103.
“While the stock recalibrated to the good news, we expect further upside potential especially given we do not expect the stock has fully discounted mid-cycle earnings potential before end markets have bottomed,” said Casey.
Cyclical Downturn Bottoming Out
“We view DE’s performance over the last few quarters,” said Casey, “and guidance, to suggest that internal return and cash flow generation ability have meaningfully improved in this cyclical downturn compared to prior down cycles.”
The three-year downturn in
Wells Fargo has an Outperform rating on Deere shares.
At last check, Deere was up 1.78 percent at $103.99.
|Oct 2016||Wells Fargo||Upgrades||Underperform||Outperform|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.