Morgan Stanley Raises Deere to “Buy”; $64 Target

Morgan Stanley (MS) analyst Robert Wertheimer this morning raised his rating on heavy equipment maker Deere (DE) from “Equal Weight” to “Overweight,” arguing the overly negative sentiment on the stock presents “a unique opportunity” given the stock’s reasonable valuation.

Among the catalysts, farmers will need new tractors as corn demand rises 4% next year from flat this year, for both feedstock and ethanol demand. Brazil, meanwhile, may bounce back, offsetting a fall in tractors in the U.S., argues Wertheimer. His target is $64, and his EPS estimate for the fiscal year ending next October is $3.22 versus the consensus $2.71.