Deere (DE) PT Raised to $619 at Truist Securities

Truist Securities analyst Jamie Cook raised the price target on Deere (NYSE: DE) to $619.00 (from $546.00) while maintaining a Buy rating.

The analyst commented, "Deere’s stock closed up 4% (vs S&P 500 ~flat) after exceeding 2Q’25 consensus EPS by 19% on better sales and margin performance in Production & Precision Ag and in Small Ag & Turf, while Construction & Forestry sales and profitability missed consensus expectations. For FY2025, DE reduced its net income forecast by $125M at the midpoint to $4.75B–$5.5B on a largely unchanged top line forecast, although costs associated with tariffs create a $500M headwind of which $100M hit the second quarter. Of the $500M headwind, DE expects C&F to realize ~40% of the tariff costs, SAT ~35% and PPA ~25%, putting pressure on margins in the back half. The good news is that Deere’s order book for PPA is full through October, providing visibility through Deere’s fiscal yearend, and channel inventory is rightsized across the portfolio which sets up the company to produce in line with retail demand in the second half of the year and in our opinion positions DE for earnings growth in FY2026. DE opened its early order program for sprayers this week and plans to open its planter EOP in June. Early indications imply DE will look to put through a 2-4% price increase for PPA products in 2026 with a goal of protecting margins through price realization and cost mitigation measures. Datapoints continue to support our view that 2025 represents the trough of the cycle. In North America, crop prices have stabilized, stocks-to-use ratios are low, and nearly 75% of farmers have already received the $10B in government aid under the Emergency Commodity Assistance Program. Additionally, we see potential upside given more positive sentiment in Brazil associated with improved yields and profitability in corn and soybeans. Even Europe is showing signs of life with dairy and livestock margins improving as well as the arable outlook."

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