John Deere stock price has plunged from $170 to $143 in 2 weeks which has caught the attention of swing traders.
Stephens analyst Ashish Gupta initiated Deere with an Equal Weight rating and a price target of $160. The analyst said that the findings of the latest WASDE report suggests that this year’s corn crop will be larger and prices will trend down. Gupta expects Deere shares to be volatile as the market digests crop updates, but expects to look for entry opportunities as “shares adjust to the reduced outlook for U.S. farmers.”
Deere will be reporting earnings on the morning of Friday, August 16, 2019. With the trade wars and China banning the purchase of some U.S. agriculture, there’s little doubt that the company will put a bearish spin on the earnings call and forecast. Remember, Deere has repeatedly shown a pattern of spinning news as negative as possible. Who can forget the company’s cyclical top statement in 2018, LOL.
Baird analyst Mig Dobre lowered his price target on Deere to $150 from $170 ahead of its Q2 report on Friday. The analyst said the setup into the report became more challenging following the WASDE report that corn production was higher than expected. He said the USDA’s impact on corn prices are likely to limit management’s visibility and ability to provide positive commentary. Dobre maintained his Outperform rating on Deere shares.
Friday’s earnings report could create a flush day where we get a long lower shadow candlestick. Swing traders are looking for a candle over candle reversal in the daily time frame before taking a long position.
Disclosure: I do not hold any position in DE stock.