Analyst Chad Dillard from Bernstein maintained a Hold rating on Deere and increased the price target to $521.00 from $487.00.
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Chad Dillard has given his Hold rating due to a combination of factors related to Deere’s strategic initiatives and growth projections. Deere’s recent Investor Day highlighted ambitious growth targets, leveraging its Smart Industrial strategy to drive volume and revenue expansion. The company aims for a 10% sales CAGR by 2030, primarily through volume increases and new market opportunities. However, while these plans are promising, the execution risks and the slower-than-expected progress in their SAAS strategy may temper immediate enthusiasm.
Furthermore, Deere’s guidance for margin expansion and operating return on sales targets are optimistic, yet achieving these will require overcoming significant challenges. The projected EPS growth, though substantial, is contingent on successful implementation of their outlined strategies, which include expanding their technology stack and pursuing inorganic growth opportunities. As such, while the long-term outlook is positive, the current uncertainties and execution risks justify a Hold rating.
Dillard covers the Industrials sector, focusing on stocks such as Caterpillar, United Rentals, and Paccar. According to TipRanks, Dillard has an average return of 9.4% and a 69.40% success rate on recommended stocks.
In another report released today, BMO Capital also maintained a Hold rating on the stock with a $460.00 price target.