The future of Deere & Co. looks better after a financial analyst said the equipment industry’s demand cycle will bottom out in the next year to 18 months.
In a report from Bloomberg, Andrew Casey with Wells Fargo says a turnaround will improve sales and margins for Deere in 2017 and 2018.
There are hints of the upturn outside the U.S. Casey says Deere may be seeing improved demand in Brazil, Europe and India. He says the company will see advantages over competitors in the next decade because of cost reductions and innovations in ag technology.
Low commodity markets and the receding ag economy have caused Deere to cut production. Growers have held off buying new tractors and are instead keeping what they have or opting to buy used equipment.
Both Deere and AGCO stock are improving.
Source: brownfieldagnews.com