Deere gets boost from BofA upgrade

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

BofA/Merrill Lynch raises Deere (NYSE:DE) to Buy from Neutral, while upping its price target to $124 from $92.

Analyst Ross Gilardi believes the company's FY17 guidance is conservative and his revised earnings estimate of $4.60 is 7% above consensus.

He also says Deere trades at a steep discount to Caterpillar, North American ag demand is at a 20-year lows, C&F is a potential U.S. fiscal stimulus beneficiary and margins should only get better, and corn and oil prices are directionally correlated.

DE +1.4% premarket