Bernstein Sees Deere & Co. (DE) Guidance Below the Street

Bernstein analyst Chad Dillard weighed in on Deere & Co. (NYSE: DE) ahead of results next week. The analyst expects the company to guide 2022 net income 4% below the Street. Dillard said their latest round of checks shows a strong end market, however, input cost inflation is sapping near-term equipment demand. Further, the firm's supply chain and strike/labor cost impact work suggests 2022 consensus margins numbers are high.

Overall, the analyst said long-term fundaments remain solid but price action/valuation suggests near-term expectations are elevated into the quarter.

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