Analyst Steven Fisher from UBS maintained a Buy rating on Deere and keeping the price target at $535.00.
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Steven Fisher has given his Buy rating due to a combination of factors discussed in recent meetings with Deere’s management. One of the key reasons is Deere’s strategic focus on reducing used inventory, which is expected to set the stage for a healthier market environment by 2027. This inventory reduction is crucial as it prepares the market for a potential replacement cycle, given that fleet age has remained above average levels.
Additionally, while there are uncertainties in the North American market, such as farmer hesitance and potential trade deals, Deere’s management remains cautiously optimistic about growth in South America. In Europe, despite challenges like tariffs and labor costs, Deere anticipates that pricing strategies and cost reductions will bolster margins. Overall, Deere’s focus on technology and efficiency improvements is expected to yield higher incremental gains in a recovery scenario, supporting the Buy rating.
In another report released today, Barclays also maintained a Buy rating on the stock with a $530.00 price target.