Deere & CompanyNYSE
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  • Thu, Dec. 1, 7:33 AM
    • 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
    | Thu, Dec. 1, 7:33 AM | 3 Comments
  • Tue, Nov. 29, 1:53 PM
    • 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."
    | Tue, Nov. 29, 1:53 PM | 5 Comments
  • Mon, Nov. 28, 12:31 PM
    • Piper Jaffray upgrades Deere (DE -1.5%) and five other agricultural equipment companies, saying it believes investors will continue to pay lofty multiples, given that the bottom of the cycle is close at hand, and valuations simply will be pushed out another year if the downturn persists as expected.
    • In addition to DE, Jaffray upgrades AGCO (AGCO -0.2%), American Vanguard (AVD +2.5%), FMC Corp. (FMC +0.4%), Lindsay (LNN +2.6%) and CNH Industrial (CNHI -1.5%) to Neutral from Underweight
    • Jaffray says DE's FY 2017 guidance that far exceeded expectations is providing the market with expectations that the cycle is nearing the bottom and poised for a recovery in the near term, and the firm continues to expect that ag will be challenging but now thinks its previous expectation to see pressure on valuations is unlikely.
    | Mon, Nov. 28, 12:31 PM | 5 Comments
  • Fri, Nov. 25, 10:57 AM
    • Macquarie and Longbow Research both throw in the towel on their bearish outlook for Deere (DE +1.7%) following Friday's blowout earnings report as they upgrade to Neutral/Hold.
    • A bull prior to Friday, Credit Suisse lifts its price target to $116 from $100, suggesting about another 12% upside.
    • With today's gain, Deere is now ahead by 36% this year and at a new all-time high. Those still talking up secular deflation may want to take notice.
    • Previously: Deere cruises to record highs after earnings rout expectations (Nov. 23)
    | Fri, Nov. 25, 10:57 AM | 7 Comments
  • Wed, Nov. 23, 3:39 PM
    • Deere (DE +11.3%) powers to all-time highs following its easy FQ4 earnings and revenue beats, as factors ranging from machinery pricing to lower overheads spending helped it report a much smaller-than-expected decline in quarterly earnings, CFO Raj Kalathur said during today's earnings conference call.
    • DE forecasts FY 2017 sales of its farm and construction equipment will fall by 1% Y/Y, but analysts were expecting sales to drop by ~3% after sliding 9.3% to $23.4B in 2016, and predicts next year's profit will slip by just 1% following a 21% decline in 2016 to $1.5B.
    • DE also said prices for new and used equipment firmed in the quarter, taking pressure off dealers to offer discounts that squeeze margins.
    • "It's not that the cycle is turning, it is that they are managing it better than before," Jefferies analyst Stephen Volkmann says.
    • Caterpillar (CAT +2.7%), which has some market overlap with DE, surges to its best levels since December 2014, while AGCO (AGCO +3.4%), Lindsay, CNH Industrial (CNHI +4.7%) and Tractor Supply (TSCO +0.8%) also are higher.
    | Wed, Nov. 23, 3:39 PM | 7 Comments
  • Wed, Nov. 23, 9:16 AM
    | Wed, Nov. 23, 9:16 AM | 3 Comments
  • Wed, Nov. 23, 7:15 AM
    • Net income of $285.3M, or $0.90 per share vs. $351.2M, or $1.08 per share in the comparable quarter of 2015.
    • Worldwide net sales decreased 3% Y/Y to $6.52B from the same quarter a year ago. Segment Sales: Agriculture & Turf. -5%; Construction & Forestry -5%.
    • "The company in 2016 had one of its ten-best years in both sales and earnings, a noteworthy achievement in light of the difficult business climate," CEO Samuel Allen declared. "We are driving further efficiency gains and have confidence we can deliver structural cost reductions of at least $500M by the end of 2018."
    • Outlook for fiscal 2017: Equipment sales are projected to decrease about 1%. Net sales are also expected to decrease about 1%, while net income is anticipated to be about $1.4B.
    • DE +9.7% premarket.
    • FQ4 results
    | Wed, Nov. 23, 7:15 AM | 17 Comments
  • Wed, Nov. 23, 6:49 AM
    • Deere (NYSE:DE): FQ4 EPS of $0.90 beats by $0.50.
    • Revenue of $6.52B (-3.0% Y/Y) beats by $1.14B.
    • Shares +2.1% PM.
    • Press Release
    | Wed, Nov. 23, 6:49 AM
  • Tue, Nov. 22, 5:30 PM
    | Tue, Nov. 22, 5:30 PM | 1 Comment
  • Wed, Nov. 9, 3:35 PM
    • Investors are betting that some big U.S. manufacturers such as Caterpillar (CAT +7.7%) could benefit from possible changes in energy, climate and tax policies in the Trump administration.
    • CAT is "looking forward to building those bridges," says VP for global government and corporate affairs Kathryn Dickey Karol, adding that the company is excited about Trump’s calls for improving the U.S. transportation network.
    • CAT says it will continue to push for adoption of the Trans-Pacific Partnership during the remaining days of the Obama administration; Martin Richenhagen, Chairman and CEO of farm equipment maker Agco (AGCO +0.9%), says he is concerned about Trump’s repeated support for trade protectionism during the campaign.
    • The potential for federal spending boosted the likes of Fluor (FLR +10.1%), Aecom (ACM +12.6%), Jacobs Engineering (JEC +9.8%), Manitowoc (MTW +14.2%), Terex (TEX +14.8%), Vulcan Materials (VMC +9.8%) and Martin Marietta Materials (MLM +11.5%).
    • Shares in Deere (DE +1.4%), Paccar (PCAR +4.5%) and Navistar (NAV +7.2%) also are higher.
    | Wed, Nov. 9, 3:35 PM | 12 Comments
  • Wed, Nov. 9, 2:44 AM
    • With Donald Trump elected as the 45th President of the United States, one of the biggest beneficiaries might be Mexican cement company Cemex (NYSE:CX).
    • Trump has campaigned to build a wall on the Mexican border and immediately begin the process of deporting illegal immigrants with criminal records.
    • Other beneficiaries: MLM, VMC, GVA, TTEK, X, NUE, STLD, DE, CAT, FLR, KBR
    • #Election2016
    | Wed, Nov. 9, 2:44 AM | 13 Comments
  • Mon, Oct. 31, 10:16 AM
    • Deere (DE +1.6%) begins the week on a positive note after Baird upgraded the stock to Outperform from Neutral with a price target of $100.
    • There are signs of emerging demand outside the U.S. as pricing of North American large agricultural equipment is back to multi-decade lows, according to the firm, which stated Deere also has meaningful cost savings in its pipeline.
    | Mon, Oct. 31, 10:16 AM | 3 Comments
  • Wed, Oct. 19, 12:22 PM
    • Deere (DE -0.1%) is maintained with an Underweight rating at J.P. Morgan, which offers 10 reasons to sell even though the stock has solidly outperformed the S&P YTD.
    • No. 1 among the firm's 10 reasons: The world is still awash in soft commodities despite major weather events in both Brazil and Argentina this past season.
    • Among others: Brazil and Argentina have become formidable competitors to U.S. crop exports, representing a structural headwind, and U.S. protein prices continue to tumble on excess supply, and the livestock sector is "likely to cull the herd."
    • Taking all the risks into consideration, JPM does not believe DE will return to the last cycle peak earnings of ~$9.00 in the next six years, even assuming cost reductions.
    | Wed, Oct. 19, 12:22 PM | 5 Comments
  • Thu, Oct. 13, 6:18 PM
    • Deere (NYSE:DE) says the Justice Department is unfairly accusing it of trying to monopolize a market that does not exist with its challenge to the planned purchase of Monsanto's (NYSE:MON) Precision Planting seed planting equipment business.
    • In August, the DoJ said the proposed deal would mean higher prices for high-speed precision planting equipment; in response, DE takes issue with the Department's definition of "high-speed precision planting system," saying it was vague and ambiguous, and "denies that there is any meaningful economic market consisting of 'high-speed precision planting systems.'"
    • The DoJ initially cleared the acquisition in October 2015 but opened a new investigation and filed a lawsuit in August 2016 to block the deal following a protest by an unnamed competitor; DE says the DoJ's case is "designed to protect a competitor, not competition."
    | Thu, Oct. 13, 6:18 PM | 11 Comments
  • Mon, Oct. 10, 7:57 AM
    • Deere (NYSE:DE) +1.7% premarket after Wells Fargo upgraded the stock to Outperform from Market Perform.
    • DE shares are up 13.2% since the beginning of the year.
    | Mon, Oct. 10, 7:57 AM | 1 Comment
  • Mon, Sep. 19, 7:48 AM
    • Used machinery is flooding the secondhand market, piling more pain on equipment makers battling slack demand amid a global slump in the value of everything from coal to corn, WSJ reports.
    • Dealers, in turn, are keeping smaller inventories of new wheel loaders, backhoes and other machinery. That is hurting sales for Caterpillar (NYSE:CAT), Volvo (OTCPK:VOLVY), Deere (NYSE:DE) and other manufacturers.
    • Rental businesses account for half of new equipment sales in the U.S., and some analysts see that climbing to 60% within five years.
    | Mon, Sep. 19, 7:48 AM | 3 Comments