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Deere & Company: Is It Going To Get Worse?

Summary

Deere’s stock continues to struggle as the company's outlook remains grim.

The stronger U.S. dollar has also adversely affected Deere’s revenue. But in recent months, the rally of the U.S. dollar came to a halt.

The ongoing struggles of Brazil could also weigh on Deere's revenue in the coming years.

Deere & Company (NYSE:DE) hasn't been doing well for a while, with its stock losing more than 20% of its value in the past three months. The current price of DE is around $76, which isn't far off the average target price of analysts - currently around $79. Low commodities prices (despite the recent modest rally in some commodities in the past few weeks), uncertain outlook in some emerging countries (China) and shirking GDP in others (Brazil) have all contributed to the company's lower target price. These factors are likely to keep weighing on the company's stock. The recent developments about Brazil alone could suggest the company may perform even worse than previously expected. But this heavy machinery company is also catching a break from the rally of the U.S. dollar, which hasn't progressed in recent months. So let's see some of the good and bad market developments and their potential impact on Deere's bottom line.

The U.S. dollar - has its rally come to halt?

One factor that has also contributed to the fall in DE's revenue was the appreciation of the U.S. dollar against major currencies. But in the past several months, the rally...


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