Deere (DE) - Get Report  fell Thursday after the stock of the the farm machinery maker was downgraded to market perform from outperform at Wells Fargo, which reiterated its $170 price target. 

The price target represents a 3% upside from the stock's previous closing price of $165.15. The stock was down 3.05% to $160.08 on Thursday.. 

Wells Fargo analyst Andrew Casey has received channel check feedback and believes that the industrial equipment company will have a "relatively lackluster" third quarter. 

"Coming into Q3 19, dealers expected an activity surge to reduce inventories, but we found no evidence of destocking this quarter. Our takeaway is manufacturers will likely need to cut production soon," Casey said. 

Deere wasn't the only stock to receive a bearish rating in the note. Casey also downgraded Caterpillar (CAT) - Get Report to market perform from outperform while also downgrading his price target to $143 from $150. 

Caterpillar shares declined 1.75% to $130.76. 

"Proprietary conversations with about 20 US earthmoving market participants suggest weakening demand for new equipment, shrinking manufacturer lead times and backlogs, and increased inventories," Casey said. "Dealers are suggesting more customers are opting to rent vs. committing to new equipment purchases. Our takeaway is manufacturers will likely need to cut production soon."

Caterpillar is a holding in Jim Cramer's Action Alerts PLUS charitable trust.