Wall Street paints a largely rosy outlook for agriculture equipment manufacturer Deere (DE). The reality down on the farm is a lot worse.
While sell-side analysts are almost universally bullish or lukewarm on shares of Deere (Buy: 8; Neutral: 14; Sell: 1), we have a differentiated view.
There’s pricing pressure in both the used and new ag equipment market that, for whatever reason, Wall Street is missing.
“We don’t have a real turn in used and new inventory. We don’t have a turn in large ag sales. I really don’t see why everyone is so comfortable calling a bottom in Deere,” says Hedgeye Industrials analyst Jay Van Sciver in the video excerpt above from a recent institutional conference call.