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Deere: Analysts’ Recommendations

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Analysts’ consensus on Deere

The number of analysts tracking Deere (DE) has decreased to 22 compared to 23 in the past three months. Among the 22 analysts, 68% recommended a “buy,” 32% recommended a “hold,” and none of the analysts recommended a “sell.” Analysts’ views and recommended target prices are widely followed by investors to track the stock price and provide more insight into the company.

Analysts’ consensus for Deere indicates a target price of $176.47, which implies a return potential of ~21.5% over the closing price as of December 28. In the past three months, the consensus target price for Deere has remained stable since its fourth-quarter earnings.

Deere missed analysts’ expectations for its fourth-quarter earnings—the third consecutive miss. However, Deere reported strong earnings growth during the quarter. Increased raw material costs and freight costs put pressure on Deere’s margins. Deere is countering the issue with price hikes for its products. Deere’s continued new product launches and the positive synergy impact from acquisitions will likely drive its future growth. As a result, most of the analysts recommended a “buy” or a “hold.”

Brokerage companies’ recommendations

  • Morgan Stanley (MS) has raised Deere’s target price to $192, which implies a potential return of 32.2% based on its closing price of $145.20 on December 28.
  • RBC (RY) has cut its target price for Deere to $190 from the earlier guidance of $200, which implies a return potential of 30.8% over the closing price on December 28.
  • UBS (UBS) rated Deere as a “buy” and recommended a target price of $177, which implies a return potential of 21.8% over the closing price on December 28.

Investors could get indirect exposure to Deere through the First Trust Indxx Global Agriculture ETF (FTAG). FTAG has invested 10.4% of its portfolio in Deere as of December 28.

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