Why Deere Stock Continues to Fall
It's been a tough week for Deere (NYSE: DE) shareholders, with the stock tumbling following a series of downgrades. On Friday, a different analyst chimed in with similar sentiment and the sell-off continued, sending Deere shares down as much as 2.6%.
Deere is a manufacturer of agriculture and construction equipment. The company has a strong business, but its end markets are notoriously cyclical and Wall Street is growing increasingly worried the cycle is turning against the company.
On Friday, downgraded Deere from a buy to a hold and cut its price target to $400, from $530. Analyst Bobby Burleson wrote that industry data shows slowing unit growth for agriculture equipment, while dealer inventories for used equipment are building and new equipment inventory levels appear to be "rapidly normalizing."
Source Fool.com
