Heavy Machinery manufacturer Deere & Co. (DE) is stepping up its game in autonomous machinery by showcasing its new self-driving tractors and industrial equipment at the CES trade show in Las Vegas. The company is focused on solving a major issue: the skilled labor shortage that has plagued the agriculture industry, especially after the pandemic, as wages rise and fewer workers are available to operate heavy machinery.
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At CES, Deere introduced its second-generation autonomy kit, which uses AI, advanced computer vision, and cameras to help machines navigate challenging terrains. Chief Technology Officer Jahmy Hindman emphasized that customers in farming, construction, and landscaping need dependable automation to stay productive when labor is scarce during peak seasons.
In addition to the tractors, Deere revealed a fully autonomous dump truck for quarry work and an electric landscaping mower, both of which come packed with cameras to enable self-driving capabilities. Deere also noted that customers can retrofit autonomy kits onto existing equipment like tractors and dump trucks in another sign that the company is determined to stay ahead of competitors.
Is DE Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on DE stock based on six Buys, seven Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After an 8% rally in its share price over the past year, the average DE price target of $474.85 per share implies 12.4% upside potential.
