Deere’s stock was left out of the broad market rally on Friday after a pair of brokerages downgraded the farm-equipment maker amid worries about valuation.
Pointing to a 29% surge in Deere’s stock year-to-date, JPMorgan recommended “taking profits,” especially because it expects crop prices to “moderate” from here, weighing on farm-related stocks.
JPMorgan also said it expects Deere to issue a conservative guidance for fiscal 20111 “on the back of higher pension and R&D costs and dealer allocation plans” for North American combines, Dow Jones reported.
After dropping more than 1% in the premarkets on the news, Deere’s stock was down 0.86% to $69.15 Friday morning. The stock is still up almost 3% over the past month and 68.5% from a year ago.