Giant stocks of agricultural machinery
The company reported a 14.1% decline on Friday after reporting better-than-expected fiscal-second-quarter results and raising full-year guidance.
The problem is that investors wanted more from the company and the DER (Ticker: DE) outperformed some of the one-time items and some of the shortcomings in the earnings. What’s more, the full-year earnings guidelines indicate that sales and earnings will accelerate in the latter half of the fiscal year.
It wasn’t a perfect quarter. Wall Street, however, does not seem concerned about the outcome.
JPMorgan Tami Zakaria writes, “From a stock perspective, sales seem to have become excessive to us.” He rated Holde Deer’s stock, not a bull, with a target price of $ 370. Nevertheless, Zakaria noted higher expectations in the earnings report. Clients are asking him if the quarterback is “an inconsistency” or “a precursor to future earnings miss and guide-down.” He thinks it’s more likely to be ex.
Bernstein analyst Chad Dillard also rated Deer’s stock holdings with a target price of 38 385. He called the sale a “strategic entry point … 2H22 paved the way for a revenue ramp up”. 2H22 short for the second half of FY 2022. Analysts use many shorthand in research reports. “We would recommend a strategic long position after this pullback.” Dillard cites two reasons. He believes the second-half direction is achievable, and he believes 2022 fiscal year is not the peak for Dir.
About $ 1 billion of machines could not be fully assembled, weakening expected machine sales, Baird analyst Mig Dobre wrote in a report on Sunday. This is the result of supply-chain problems for all manufacturers. “The print reflects the negative stock response [supply] The challenge, however, is the reversal of the recent macro / Ukraine-driven flow that we suspected would not be able to manage the earnings of any supply chain / spending pressure. ”
Earnings reports come in, since Russia invaded Ukraine, while Dir’s stock has risen about 6%
In the same span it was about 9% less. Those Deere Stock Dobre Reference Inflows.
Dobre rates the share at Buy with a target price of $ 442. Deutsche Bank analyst Jamie Cook also rated Deere shares, but the price target is $ 472. He writes that the stock response reflects expectations for a cleaner beat-and-rise type quarter, but says the setup looks good for fiscal year 2023. Cook noted strong orders for agricultural equipment in North and South America, as well as in Europe. “There is also no immediate solution to the Russia / Ukraine war that supports higher prices for goods with older fleets,” Cook wrote in a report on Monday.
Overall, 56% of analysts are covering Deere stock rate shares in Buy. This is almost the same, since the average buy-rating ratio of the S&P 500 is about 58%. The average analyst price target for Deere shares is around $ 408, indicating a gain of about 30% based on the closing price of 31 313.31 per share on Friday.
Deere stock rose slightly in pre-market trading on Monday. S&P 500 and
Dow Jones Industrial Average
Futures rose 0.9% and 1%, respectively.
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