Deere & Company news for Monday concerning an upgrade for the company has DE stock up on Monday.
The upgrade for Deere & Company (NYSE:DE) comes from Jefferies analyst Stephen Volkmann. This has the analyst increasing their rating for DE stock from a “Hold” to the new rating of “Buy”. The reason given for the change is an upcoming replacement and upgrade period for farm equipment.
The Deere & Company news for today doesn’t just stop at an upgrade for DE stock. It also includes a new price target for it as well. This has Volkmann setting a new price target of $190 per share for DE stock. The previous price target from Jefferies was $150 per share.
This new price target for DE stock is positive Deere & Company news for investors. It implies that there is plenty of upside for DE stock. DE stock was trading at $164.30 when the markets closed on Friday. This has the new price target representing a roughly 16% increase for the stock.
“The company has taken several steps over the last downturn to reduce costs and improve manufacturing operations. We believe the improved cost structure should result in incremental margins north of 25% as volumes return in 2020,” Volkman wrote in a note obtained by TheStreet.com. “Correspondingly a higher mix of large ag products should add to incrementals which we are now projecting to be just under 30% for next year.”
DE stock was up 1% as of Monday afternoon and is up 10% since the start of the year.
As of this writing, William White did not hold a position in any of the aforementioned securities.
