Skip to main content

Market Overview

Deere Spikes Higher Following Earnings, UBS Still Sees Upside

Share:
Deere Spikes Higher Following Earnings, UBS Still Sees Upside

UBS still sees upside in Deere & Company (NYSE: DE) shares despite its 11 percent jump on Wednesday following blow-out third-quarter results on cost cuts.

The brokerage, albeit maintaining its Neutral rating, raised the price target on the shares to $105 from $87, with the revised target implying potential upside of about 3 percent over November 23 close.

“The bottom line is that the primary negatives for Deere stock over the last couple of years (i.e. NA large ag and Finco risk) appear to be neutralizing, and if FY17 is the bottom, then trough earnings would be higher than expected,” analyst Steven Fisher wrote in a note.

Looking Forward

Deere forecasts FY 2017 net income to decline about 8.1 percent to about $1.4 billion (Street/UBSe about $1.2 billion). Fisher said the guidance implies EPS of $4.43, although further buybacks could provide some upside.

Fisher raised his 2017/2018 EPS estimates by 17 percent/18 percent to $4.45/$4.85, respectively.

“We are raising our EPS estimates to reflect reduced cost under-absorption as DE is cutting costs more quickly than initially anticipated,” Fisher highlighted.

At last check, shares of Deere were up 1.82 percent at $104.03.

Latest Ratings for DE

DateFirmActionFromTo
Mar 2022Wells FargoInitiates Coverage OnOverweight
Feb 2022OppenheimerMaintainsOutperform
Feb 2022JP MorganMaintainsUnderweight

View More Analyst Ratings for DE

View the Latest Analyst Ratings

 

Related Articles (DE)

View Comments and Join the Discussion!

Posted-In: Analyst Color Earnings News Guidance Price Target Reiteration Analyst Ratings Movers Best of Benzinga

Latest Ratings

StockFirmActionPT
SEDGB of A SecuritiesMaintains411.0
PTLOPiper SandlerMaintains28.0
AOUTLake StreetMaintains26.0
RAPTPiper SandlerMaintains52.0
OCXLake StreetMaintains6.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com