Deutsche Bank senses a 'growing anxiety' over Deere & Co's (DE) Q4 print

November 25, 2022 12:10 PM EST
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Price: $408.40 +0.58%

Rating Summary:
    19 Buy, 15 Hold, 4 Sell

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Deere & Co. (NYSE: DE) price target was raised to $390 from $374 at Deutsche Bank on Friday, with its rating kept at Hold.

Deutsche Bank analyst Nicole DeBlase said in a note to clients that the market "feasted on 4Q strength" but questioned if there is a "food coma to come."

"In our conversations with investors in recent days, we sensed growing anxiety over DE's 4Q print, primarily around the company's ability to execute on a big implied sequential ramp in revenue and earnings. But the company delivered on this, beating consensus segment income forecasts by 3%, and our own (which weren't far from consensus) by $0.35," wrote DeBlase.

Argus raised its price target on Deere to $475 from $420, maintaining a Buy rating on the stock.

"As a global manufacturing company, Deere is affected by worldwide trends in trade policies, exchange rates and commodity prices. However, Deere management understands, and does a good job of managing the factors it can control, such as pricing and costs. Sales and earnings are benefitting in the current environment from relatively high commodity prices; volumes are picking up. Meanwhile, Deere management has taken steps to reduce costs, and is targeting all-time high margins. A new CEO and CFO have been appointed recently, and both are from Deere's innovative Precision Ag group. We see continued solid earnings power in the quarters ahead, as new management innovates to improve products and the company's customers carry out the essential work of promoting food security. In our view, the shares offer value despite a recent strong performance," the firm wrote.

Elsewhere, Deere's price target was raised at UBS, JPMorgan, Credit Suisse, and Baird, following its earnings release.

Deere shares are up 0.8% Friday, following Wednesday's 5% jump.

By Sam Boughedda

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