Deere ( NYSE: DE ) shares +3.8% in Thursday's trading, rebounding from their lowest level since January 2021, as Citi upgrades to Buy from Neutral, although with a reduced $340 price target, seeing a "2:1 upside/downside case from current levels."
Citi's Timothy Thein says macro variables are sending "too strong a message that a downturn is coming," but for H2 2022 and into 2023, he recommends "higher 'quality' names with greater cash flow visibility that can hold pricing in a potentially peak-inflation environment."
Meanwhile, analysts at Cowen maintain a Market Perform rating on Deere ( DE ) but cut their stock price target to $342 from $396, while keeping an Outperform rating on Caterpillar ( CAT ) with a $225 PT, reduced from $255.
"Underperforming the market is the most likely scenario ahead" for Deere ( DE ), Vladimir Dimitrov writes in a bearish analysis published recently on Seeking Alpha .
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Deere upgraded to Buy at Citi after shares hit 18-month low