Deere Slashed to “Underweight” at JP Morgan; Midwest Fundamentals Look Bleak (DE)

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Farming and construction equipment maker Deere & Company ( DE ) on Tuesday caught a big downgrade from analysts at JP Morgan.

The firm cut its rating on DE from "Overweight" all the way down to "Underweight" with a $78 price target. That target suggests a small upside to the stock's Monday closing price of $76.78.

JP Morgan said it made the downgrade due to deteriorating fundamentals in the Midwest, where a summer drought is wreaking havoc on corn and other crops.

Deere shares fell $1.54, or -2%, in premarket trading Tuesday.

The Bottom Line
Shares of Deere & Co. ( DE ) have a 2.40% dividend yield, based on last night's closing stock price of $76.78. The stock has technical support in the $70 price area. If the shares can firm up, we see overhead resistance around the $80-$82 price levels.

Deere & Company ( DE ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Stocks
Referenced Stocks: DE


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