Morgan Stanley Starts Coverage on Deere & Company with “Underweight” Rating (DE)

On Thursday, Morgan Stanley reported that it has begun coverage on agriculture company Deere & Company (DE).

The firm has initiated coverage on DE with an “Underweight” rating and $72 price target. This price target suggests a 14% decline from the stock’s current price of $83.63.

Analyst Nicole DeBlase noted, "we forecast 8% downside to 2014e consensus, as we are concerned about recent deterioration in the used equipment market, augmented by a negative margin mix shift, as evidenced by our proprietary survey work. Our $72 PT implies 14% downside, and we project a 2-to-1 negative risk/reward ratio."

Deere & Company shares were down 98 cents, or 1.16%, during Thursday morning trading. The stock has been mostly flat YTD.