In a report released today, Matt Elkott from TD Cowen maintained a Hold rating on Deere (DE – Research Report), with a price target of $383.00.
Matt Elkott has given his Hold rating due to a combination of factors surrounding Deere’s stock. He has adjusted the fiscal year 2024 and 2025 earnings per share estimates to $27.35 and $29.00, a decrease from previous estimates. This adjustment has also led to a lowered price target of $383, taking into account the new EPS estimate while maintaining a 14x multiple. Elkott suggests that Deere is approaching a period where the imbalances of equipment supply-demand are becoming less significant, indicating a stabilization within the industry. This stabilization is expected to result in less volatility for the stock, which in turn may trade within a narrower range.
Furthermore, Elkott notes that while some investors were seeking a more attractive entry point or indications of a less severe industry downturn, recent financial reports have not provided compelling evidence to suggest significant deviations from expected patterns. Despite this, Deere continues to make progress with its precision agriculture technology and is poised to introduce new products. Additionally, the North American demand environment is holding up comparatively well against Europe’s weakening market, but the analyst anticipates that factors such as pricing and decrementals could have a more prominent impact as the fiscal year progresses. This combination of a predictable demand environment and the absence of new, reinforcing insights justifies the Hold rating on Deere’s stock.
In another report released today, Bank of America Securities also reiterated a Hold rating on the stock with a $412.00 price target.
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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.
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