Deere & Co. (DE) Stock Downgraded by Analysts

NEW YORK (TheStreet) -- Deere & Co. (DE) stock was downgraded today by analysts at Robert W. Baird to "neutral" from "outperform" and the price target was lowered to $98 from $102.

The action comes after the manufacture of agricultural machinery posted its second quarter results last Friday. The company reported revenue of $8.17 billion, or $2.03 earnings per share, compared to revenue of $9.25 billion, or $2.65 earnings per share.

Overall, the company's quarterly revenue dropped 20% from the same period last year.

Lower sales of agriculture and turf were recorded in all regions of the world, but the decrease was primarily due to lower shipment volumes of large agricultural equipment in the U.S. and Canada, the company said.

Analysts believe 2016 will be another difficult year in terms of demand for farm equipment. Also, with corn prices likely to face seasonal under pressure, the stock might see some negative sentiment through the summer, they highlighted.

In Tuesday's morning trading, shares of Deere & Co. are gaining 0.8% to $94.10.

TheStreet Ratings team rates DEERE & CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate DEERE & CO (DE) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and notable return on equity. We feel its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share."

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