In a report released today, Angel Castillo from Morgan Stanley reiterated a Buy rating on Deere, with a price target of $500.00.
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Angel Castillo’s rating is based on a combination of factors that highlight Deere’s potential despite current market challenges. Although Deere’s recent earnings report showed a decline in equipment demand for the third consecutive year, the company’s earnings per share (EPS) appear to be stabilizing around $18. This stabilization, coupled with a long-term thesis that remains intact, reinforces the intrinsic value of the stock.
Despite the broader market sell-off and disappointing fundamentals, Castillo maintains an Overweight rating with a $500 price target. The expectation of a stronger EPS in 2025, along with improving operating income margins and ongoing cost management strategies, supports the potential for a future mid-cycle EPS exceeding $35. While near-term fluctuations may keep shares range-bound, the underlying value proposition and strategic actions by Deere suggest a positive long-term outlook.
According to TipRanks, Castillo is an analyst with an average return of -1.0% and a 49.61% success rate. Castillo covers the Industrials sector, focusing on stocks such as Deere, Oshkosh, and CNH Industrial.
In another report released today, Truist Financial also maintained a Buy rating on the stock with a $602.00 price target.