Morgan Upgrades Deere

Published on Monday, 23 November 2009 14:53 Written by Danny Miller

New York, Nov 23 (TradersHuddle.com) – Deere & Co (NYSE:DE) jumped on news that Morgan Stanley upgraded the stock.

The Analyst at Morgan Stanley moved the rating for the stock to “Buy” from “Neutral, citing growing farm equipment demand as customers add acreage. The analyst comments that over the next 10 years, large farmers will acquire acreage from small farmers that do not buy new equipment. This phenomenon will increase demand in 6,000 additional tractors.

An additional factor on the bullish call is forecast for higher corn prices in 2010, amid increasing demand for feed and ethanol.

Deere (NYSE:DE) is schedule to release their quarterly earnings report on Wednesday before the market opens, meanwhile shares jumped 5.4% on the upgrade, reaching an intraday high of $53.59.