Deere & Co. (NYSE:DE) was downgraded from "Outperform" to "in Line" by analysts at research firm Evercore ISI, with a price target of $424.00 (from $456.00).
Evercore ISI also downgraded peer CNH Industrial NV (NYSE:CNHI) from "Outperform" to "In Line" with a price target of $14.00 (from $16.00).
Analysts said they received "color" over the weekend from EU component contacts regarding risks to revenue across agriculture.
"…nuggets from my component contacts over the weekend highlight rev risk across ag is already here," said analysts that cover industrials and machinery.
They said their component contacts are getting build schedule changes/updates from their OEMs, and the results didn’t paint a great picture for ag, with year-over year declines expected.
Evercore ISI noted that consensus sales estimates for fiscal 1Q24 for Deere are not that aggressive. However, for full fiscal year 2024, the trends and early color from contacts on 2024 Deere build schedules do suggest revenue declines for next fiscal year.
The analysts' contacts also noted that late last week CNHI cut its Brazil ag build schedule for the second half of 2023.