Piper Jaffray Maintains Overweight on Deere on Agriculture Profit Contribution

In its Wednesday report, Piper Jaffray analyst Brett Wong reiterated an Overweight rating on Deere (NYSE: DE) and maintained a price target of $105.00.

In the report, Piper Jaffray stated, "While the construction equipment segment is creating a greater drag than we had anticipated, we believe Deere net income guidance remains conservative. We look for DE shares to recover from today's pullback as investors digest the potential for greater sustainability in earnings over the next 3-4 quarters. We are making no changes to our FY13 and FY14 EPS estimates, though the profit contribution this year is more skewed to agriculture than previously modeled."

Deere & Company is currently trading at $89.30, down 4.77 percent since market open.