We are upgrading our recommendation on Deere & Co. (DE) to Outperform from Neutral as we anticipate it to perform well above the broader market. Deere is one of the largest manufacturers of agricultural equipment and commands a strong worldwide presence.
The company is expected to continue benefitting from a strong global agricultural cycle as well as encouraging support programs from the Chinese and Brazilian governments. Moreover, Deere has a consistent track record of returning cash to shareholders in the form of regular dividend payments.
Our long-term Outperform recommendation on the stock indicates that it would perform well above the market. Our target price of $67.00, 21.0X 2010 EPS, reflects this view.Zacks Investment Research
