Deere’s stock sinks toward 5th-straight loss after BofA downgrade on order concerns

Shares of Deere & Co.
DE,
-4.48%
dropped 4.6% in morning trading Monday, putting them on track for a fifth-straight loss, after BofA Securities downgraded the agricultural and construction equipment company, citing concerns over “more tepid” order patterns. The stock has tumbled 12.2% over the past five trading days, since it closed at a record $438.45 on April 18. Analyst Ross Gilardi cut his rating to neutral from buy, and lowered his stock price target at $450 from $475. Gilardi said a survey of 40 dealers showed that less than 40% plan to order more equipment, compared with 57% six months ago. “Deere’s earnings have not peaked, but we believe that a lot of good news is priced into the stock,” Gilardi wrote in a note to clients. “As expected, dealer commentary on pricing and inventory was bullish, but we detected a little more caution on order trends due to fertilizer shortages than anticipated.” Deere’s stock has rallied 12.3% year to date, while the SPDR Industrial Select Sector ETF
XLI,

has lost 8.5% and the S&P 500
SPX,
+0.57%
has dropped 11.1%.