Deere price target raised to $440 from $420 at Baird

Baird raised the firm’s price target on Deere to $440 from $420 and keeps an Outperform rating on the shares after the company reported Q2 sales and EPS above consensus. Deere’s guidance cut reflects a more conservative end market view and meaningful production cut in the second half aimed at destocking the channel across geographies, says the analyst, who argues that “Deere is emerging as the most proactive OEM in adjusting production to right-size channel inventories.” Deere’s “short-term pain will lead to longer-term gain,” the analyst added.