10 reasons to sell Deere shares, offered by J.P. Morgan analysts

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

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.