Signs that the U.S. agricultural market will bottom in 2017 are bullish for Deere & Co. and suggest the stock has room for further gains in 2017 even after a strong fourth quarter. That’s the conclusion of Baird Equity Research analyst Mircea Dobre in a note Friday. Dobre rates the stock outperform and has a stock price target of $117, or about 13.5% above current trading levels.”Our view is that a bottom in 2017 appears likely as North American large Ag equipment volumes are approaching prior cyclical bottoms, high horsepower equipment sales/planted acres are near 40-year lows, large Ag new equipment inventories have destocked near historical lows and while auction used equipment prices are still pressured, deterioration is nowhere near 2013-15 as selling conditions seem to be improving into 2017,” Dobre wrote. Deere shares were slightly higher Friday, but have gained 35% on the year, while the S&P 500 is up 10%.
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