Analyst Nicole Deblase of Deutsche Bank maintained a Hold rating on Deere (DE – Research Report), with a price target of $401.00.
Geoff Meacham has given his Hold rating due to a combination of factors surrounding Deere & Co.’s recent performance and future outlook. Despite Deere reporting a significant beat in Equipment Operations segment income and an overall earnings per share that exceeded expectations by 19%, the company also reduced its full-year net income guidance. This revision was down by 5% at the midpoint, indicating potential downsides in upcoming consensus net income expectations. Deere’s lowered guidance stems from anticipated declines in revenue and margin forecasts within its key Production & Precision Agriculture segment, as well as softer retail sales projections in North America and expected production shortfalls in Europe and South America.
Moreover, the agricultural sector is just beginning to experience a downturn, with uncertain depth and duration, which contributes to the difficulty in forecasting retail sales trajectory amidst this environment. Deere’s target to align production with retail demand by fiscal year 2025 is ambitious, but in the face of a projected significant decrease in farm net income, it is challenging to have confidence in this goal. Additionally, the current price-to-earnings multiple for Deere’s stock suggests potential value, but the uncertain market conditions could result in the stock trading laterally until there is more clarity on the downturn’s impact. The revised price target reflects a cautious stance, with the Hold rating being maintained amidst this backdrop of risk and uncertainty.
According to TipRanks, Deblase is a 5-star analyst with an average return of 15.7% and a 57.98% success rate. Deblase covers the Industrials sector, focusing on stocks such as Johnson Controls, Caterpillar, and Oshkosh.
See Insiders’ Hot Stocks on TipRanks >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Deere (DE) Company Description:
Founded in 1837, Illinois-based Deere & Co. manufactures and distributes various equipment that is used in agriculture, construction, forestry, and turf care. The company operates through three business segments: Agriculture and Turf, Construction and Forestry, and Financial Services.
Read More on DE:
