JPMorgan clings to bearish Deere view

|About: Deere & Company (DE)|By:, SA News Editor

Holding ground in the face of an 11% move higher since earnings last week, and with the stock now up 32% this year to new all-time highs, the team of Ann Duignan and Thomas Simonitsch reiterate an Underweight rating on Deere (NYSE:DE).

They note next year's outlook for net income of $4.42 per share (vs. consensus of $3.84) assumes equipment sales falling 1% and a 1% tailwind from forex.

Ag fundies remain weak in North America, say the JPMorgan analysts, and are likely to come under increased pressure in 2017 thanks to dollar strength and the upcoming South American crop. "The risks appear skewed to the downside at current valuation."