Deere a near-term Buy, says DA Davidson

DA Davidson analyst Michael Shlisky keeps a Buy rating and $520 price target on Deere. The electric-vehicle and alternative-meat industries represent long-term question marks for row-crop acreagre, but the current ethanol usage does appear stable in the near-term, and the megatrends are likely to take over 20 years to play out, making the stock a "near term Buy", the analyst tells investors in a research note. The firm further notes that Deere is shifting to a services-based subscription model for both autonomy and precision agriculture, and DA Davidson’s assessment of the market suggests that Deere’s share of the value-add to the farmer will far outweigh the lost "iron" sales over time.