Still Like Deere Following Earnings, But Investor Patience Needed; Maintaining Buy

5/15 - "Wednesday’s sell-off post the stock’s run up into the quarter may seem tempting as an opportunity add to positions but we’d advise time sensitive investors to be patient as DE stk likely stalls near-term through the July Machinery earnings season as angst increases across the group that rising material costs, a strengthening US dollar and a potentially flattening yield curve are signals to take some profits after the group’s outperformance year to date. DE also erred, in our view, by not providing more disclosure on how it gets to its increased y-o-y material & freight cost increase."

"...the ag cycle is alive & well with developing Russia/CIS (markets) not fully appreciated by the Street, DE pricing actions likely getting at least back in line with cost inflation in ’09, & DE is the “best of breed” way to play ag in Machinery with the stk having support i...