Deere & Company (NYSE: DE) tempered its revenue, net income and cash flow outlook for 2019, but RBC Capital Markets said Monday investors should expect the company to keep plowing along and maintained a bullish long-term outlook on the stock.
RBC's Seth Weber maintained an Outperform rating on Deere, but lowered the price target from $190 to $175.
Weber said in a note to investors that Deere’s reset isn’t a big surprise given noise around U.S.-China trade relations, weather challenges and an outbreak of African swine flu in Asia. Those have all put pressure on American farmers and or crop demand, deflating the start to the agriculture industry’s year.
But assuming the environment settles, planned second-half production cuts should position Deere well for 2020, Weber wrote.
RBC trimmed its estimates a bit to reflect the current trade and tariff turmoil and tempered outlook, but otherwise views the Outperform thesis as intact.
Investors didn’t seem immediately bothered by the reset, with Deere's stock trading up slightly on Monday to $135.83.
Deere Posts Mixed Q2 Results, Guidance Cut
Bank Of America Downgrades Deere After Big Run
Latest Ratings for DE
View More Analyst Ratings for DE
View the Latest Analyst Ratings
See more from Benzinga
- GameStop Falls As Credit Suisse Lowers Earnings Estimates, Price Target
- Morgan Stanley Upgrades Target After Recent Pullback
- We're Not Having Babies! US Birth Rate Drops To Lowest In More Than 30 Years
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.