+------------------------------------------------------------------------------+
BofA ‘More Cautious’ on Deere, Initiates CNHI at Underperform 2013-11-08 12:28:47.974 GMT
By Arie Shapira Nov. 8 (Bloomberg) -- BofA downgrades Deere to neutral vs buy, PT $89 from $95; initiates CNH Industrial at underperform, PT $10. * “More cautious” on DE given lower corn prices, upside risk to USDA crop production forecasts, less confidence in Section 179 extension, headwinds for construction equipment given “extremely poor” read-through from CAT/CNH earnings * Still has favorable L-T view on farm equipment demand * DE has 8 buys, 10 holds, 8 sells w/ avg PT $86 * DE down 5.6% YTD vs S&P 500 Machinery index (S5MACH) up 14% * DE reports 4Q Nov. 20 * NOTE: USDA to release first WASDE report in two mos. today 12pm, see preview * NOTE: ISI Group yday downgraded machinery sector to neutral; DE, CNHI both cut to neutral vs buy
For Related News and Information: First Word scrolling panel: FIRST<GO> First Word newswire: NH BFW<GO>
--With assistance from Roger Neill in London.
To contact the reporter on this story: Arie Shapira in New York at +1-212-617-1488 or ashapira3@bloomberg.net
To contact the editor responsible for this story: Joanna Ossinger at +1-212-617-7789 or jossinger@bloomberg.net