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How Analysts View Deere ahead of Fiscal 1Q18 Earnings

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Analyst consensus on Deere

The number of analysts tracking Deere (DE) has been on the rise over the past four months. Currently, of the 24 analysts tracking Deere, 50% of the analysts have recommended the stock as a “buy,” 46% of the analysts have recommended the stock as a “hold,” while 4% of the analysts have recommended the stock as a “sell.”

The analyst consensus indicates that Deere’s target price is at $171.60. Since November, analysts’ consensus on Deere has moved up from $131.50 to the current consensus of $171.60, indicating a bullish opinion among analysts.

Most analysts rate Deere as a “buy” or “hold”

Deere beat analyst earnings estimates in fiscal 4Q17, and investors hope the trend will continue in fiscal 1Q18 as well. The stronger revenue growth guidance for fiscal 2018, the completion of the Wirtgen acquisition, and the acquisition of Blue River Technologies and Mazzotti will likely contribute to Deere’s future growth. Thus, most analysts rate Deere as a “buy” or “hold.”

Suggestions by individual brokerage firms

  • Barclays (BCS) has raised Deere’s target price to $176.00, which implies a potential return of 10.5% based on its closing price of $159.21 as of February 12, 2018.
  • RBC (RY) rated Deere as “outperform” with a target price of $190, which implies a potential return of 19.3% based on its closing price of $159.21 as of February 12, 2018.
  • Credit Suisse (CS) has provided Deere with a target price of $198, which implies a potential return of 24.4% over the closing price as of February 12, 2018.

Investors looking for indirect exposure to Deere can invest in the Natural Resources ETF (HAP), which invests 6.9% of its portfolio in Deere as of February 12, 2018.

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