Evercore downgrades CNH, Deere on slowing agricultural truck orders
19/09/2023 08:04
** Evercore prefers construction equipment over agricultural
trucks, citing new agriculture production cuts from proprietary
contacts in Europe and Brazil
** It downgrades CNH CNHI.MI CNHI.N and Deere DE.N to
"in-line" from "outperform", saying agriculture is "just a
struggle to work" in the near/medium term despite unchallenging
valuations
** Milan-listed shares of CNH fall 1.5% in early trading
** The broker trims its estimates for CNH's EPS to $1.74
from $1.84 in 2023 and to $1.55 from $1.74 in 2024
** It raises 2023 EPS estimate for Deere to $33.97 from
$31.96, but cuts 2024 forecast to $31.52 from $32.19 driven by
an expected 5.5% decline in global agriculture & turf sales
** Based on 2024 estimates, Evercore cuts its target price
on CNH to $14 from $16, and on Deere to $424 from $456
** New York- and Milan-listed shares of CNH had dropped 16%
YTD to $13.37 and 12.56 euros respectively as of Monday's close
** Shares in Deere have fallen 4% YTD to $410.84
($1 = 0.9362 euros)
(Reporting by Alessandro Parodi)
((alessandro.parodi@thomsonreuters.com))