UPDATE: Deere Holding Up in Weak Tape After ISI Upgrade

Shares of Deere (NYSE: DE) are holding up in a weak tape after ISI upgraded shares from Cautious to Neutral and raised the price target from $83 to $95.

While analyst David Raso is upgrading the stock, he trimmed the second quarter earnings per share estimate $0.27 to $2.33 (consensus $2.26).

The analyst visited Deere agriculture dealers and transportation contacts and found:

• “Shipment delays for the new emission model of Deere's highly profitable 8000 series tractors.”
• ”Overall weak orders for high hp equipment (down 15%-20% for sales into crop farmers).”
• ”Recent crop price rally not yet helping demand.”
• ”problematic used equipment inventory of late model equipment.”

Raso sees a “sustainable rally in crop prices amid heavily negative agriculture investor sentiment/a crowded short.”

The shares are flat in Thursday's trading.