Why Shares of Deere Fell Again Today
Shares in the agriculture and construction machinery maker Deere & Company (NYSE: DE) were down by 4% at 10 a.m. ET Thursday. The move comes in the aftermath of an analyst downgrade a few days earlier and continued declines in key prices for crops like corn, wheat, and soybeans.
Evercore ISO (NYSE: EVR) analyst David Raso cut his price target to $424 from $456 and downgraded the stock to in-line from outperform.
In reality, an in-line rating implies a sell because if a company is only estimated to perform in line with the market or its sector, then there's no reason to take on extra stock-specific risk by holding Deere stock rather than buying the market or its sector via an exchange-traded fund. Raso's concern is that slowing production levels in South America will lead to lower sales volumes in key markets like Brazil.
Source Fool.com
