Shares of Deere & Co. DE, -5.26% 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, -0.86% has lost 8.5% and the S&P 500 SPX, -0.32% has dropped 11.1%.
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