Deere, the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Stephen Volkmann from Jefferies downgraded the rating on the stock to a Sell and gave it a $550.00 price target.
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Stephen Volkmann has given his Sell rating due to a combination of factors related to valuation and cycle timing. Deere’s share price has more than doubled from its 2022 trough and sharply outperformed the broader market, leaving the stock trading at a mid‑30s earnings multiple, far above its historical peak range and implying an aggressive earnings rebound that he believes is premature.
He expects the agricultural downturn to bottom around 2026, but notes that farmer income is projected to decline further, input costs remain elevated, and weak farm economics are likely to delay a meaningful equipment replacement cycle. In his view, the current price already embeds an early and robust profit peak of roughly $50 per share by 2027/2028, while his base case places that peak later and at a lower multiple, leading to a $550 target that sits well below the current market price.
Volkmann covers the Industrials sector, focusing on stocks such as Caterpillar, Deere, and Fastenal Company. According to TipRanks, Volkmann has an average return of 20.7% and a 68.22% success rate on recommended stocks.