Analyst Sees Better Days Ahead For Deere Stock

Jefferies took its price target to record-high territory

Managing Editor
Jun 24, 2019 at 9:17 AM
facebook X logo linkedin


The shares of Deere & Company (NYSE:DE) are up 1.2% in electronic trading this morning, after a big upgrade from Jefferies. The brokerage firm raised its rating on Deere stock to "buy" from "hold," while goosing its price target up to $190 from $150, record-high territory. The analyst in coverage sees higher prices and incomes on the horizon now, thanks to the new farm cycle on deck after a 5-year period of oversupply. Jefferies did also warn that weather and volume issues could serve as near-term headwinds, though. 

After flirting with the $170 level in late April, Deere stock spent the next month reeling from a combination of trade headwinds and post-earnings bear gaps. But since a year-to-date bottom near $132 on May 20, DE has turned in only six negative sessions on its way to five weekly wins. And thanks to today's price action, the shares have now filled the May 6 bear gap that started the freefall.  

For such a volatile stock, it's no surprise that the analyst sentiment is rather mixed. Of the 15 brokerages covering DE, six rate it a "hold" or "strong sell." Plus, the consensus 12-month price target of $163.89 is a discount to Friday's closing perch of $164.28. There's more pessimism elsewhere; short seller ranks have swelled by almost 30% in the two most recent reporting periods, and accounts for four times the average daily trading volume.

Data does suggest it's a good time to speculate on Deere. The equity currently boasts a Schaeffer's Volatility Index (SVI) of 23%, which ranks in the 12th annual percentile, showing relatively muted option premiums at the moment.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI