Cautious Hold on Deere: High Valuation Amid Uncertain Market Conditions

In a report released yesterday, Joel Jackson from BMO Capital maintained a Hold rating on Deere (DE – Research Report), with a price target of $460.00.

Joel Jackson’s rating is based on a combination of factors that influence the current valuation of Deere’s stock. He notes that while there is an expectation for slightly higher volumes and prices next year, the stock is trading at a high multiple on what is considered trough earnings. This suggests that the stock may have advanced too quickly in anticipation of future performance, prompting a more cautious approach.
Additionally, Jackson highlights the uncertainty surrounding large capital purchases by growers, which may not occur broadly in the near term. Concerns about operating margins, particularly due to tariff impacts, also play a role in his Hold rating. Despite some positive indicators, such as potential improvements in used inventory dynamics and favorable conditions in Europe, these factors contribute to a neutral stance on the stock at its current valuation.

In another report released yesterday, Citi also maintained a Hold rating on the stock with a $550.00 price target.