JPMorgan Chase & Co. Forecasts Strong Price Appreciation for Deere & Company (NYSE:DE) Stock

Key Points

• JPMorgan raised Deere’s price target to $625 from $585 but maintained a neutral rating, implying approximately 4.2% downside from the stock’s cited price of $652.54.
• Analyst sentiment is more positive overall: Deere has a consensus “Moderate Buy” rating and an average price target of $688.10, with recent upgrades from Barclays, Robert W. Baird and Evercore.
• Deere beat quarterly expectations with adjusted EPS of $5.10 versus $4.69 expected and revenue of $12.61 billion versus $10.81 billion; however, regulatory scrutiny and higher interest rates pose potential risks to equipment demand.

Deere & Company (NYSE:DE - Get Free Report) had its target price hoisted by equities research analysts at JPMorgan Chase & Co. from $585.00 to $625.00 in a research note issued on Thursday, Benzinga reports. The firm currently has a "neutral" rating on the industrial products company's stock. JPMorgan Chase & Co.'s price target indicates a potential downside of 4.22% from the company's current price.

A number of other brokerages have also recently issued reports on DE. Barclays upped their price objective on shares of Deere & Company from $640.00 to $675.00 and gave the stock an "overweight" rating in a report on Monday, August 24th. Wall Street Zen lowered Deere & Company from a "hold" rating to a "sell" rating in a report on Saturday, August 22nd. Robert W. Baird upgraded Deere & Company from a "neutral" rating to an "outperform" rating and upped their price target for the stock from $640.00 to $800.00 in a research note on Monday, August 31st. Evercore raised Deere & Company from an "in-line" rating to an "outperform" rating and set a $813.00 price objective on the stock in a report on Wednesday, September 2nd. Finally, Citigroup raised their price objective on Deere & Company from $610.00 to $650.00 and gave the company a "neutral" rating in a research note on Friday, August 21st. Seventeen investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. Based on data from MarketBeat, Deere & Company currently has an average rating of "Moderate Buy" and a consensus price target of $688.10.

Deere & Company Stock Down 0.7%

DE traded down $4.33 during midday trading on Thursday, hitting $652.54. 1,387,225 shares of the company's stock traded hands, compared to its average volume of 1,365,457. The company has a debt-to-equity ratio of 1.45, a current ratio of 2.10 and a quick ratio of 1.89. The company has a market cap of $175.94 billion, a PE ratio of 36.25, a price-to-earnings-growth ratio of 2.50 and a beta of 0.86. The stock's fifty day simple moving average is $653.35 and its 200-day simple moving average is $608.66. Deere & Company has a one year low of $433.00 and a one year high of $721.22.

Deere & Company (NYSE:DE - Get Free Report) last posted its earnings results on Thursday, August 20th. The industrial products company reported $5.10 EPS for the quarter, topping the consensus estimate of $4.69 by $0.41. The company had revenue of $12.61 billion during the quarter, compared to the consensus estimate of $10.81 billion. Deere & Company had a net margin of 10.16% and a return on equity of 18.10%. The company's revenue for the quarter was up 6.2% compared to the same quarter last year. During the same period in the previous year, the firm posted $4.75 earnings per share. As a group, equities analysts anticipate that Deere & Company will post 18.12 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Deere & Company

A number of institutional investors have recently made changes to their positions in DE. Baxter Bros Inc. acquired a new stake in Deere & Company in the 2nd quarter valued at $1,707,000. Global Retirement Partners LLC acquired a new position in shares of Deere & Company during the 2nd quarter worth about $3,890,000. Nykredit A S acquired a new position in shares of Deere & Company during the 2nd quarter worth about $44,378,000. TRB Wealth Management LLC bought a new position in shares of Deere & Company in the 2nd quarter valued at about $623,000. Finally, Pacific Sage Partners LLC bought a new position in shares of Deere & Company in the 2nd quarter valued at about $2,592,000. 68.58% of the stock is currently owned by institutional investors.

More Deere & Company News

Here are the key news stories impacting Deere & Company this week:

• Positive Sentiment: Evercore upgrade: Evercore ISI upgraded Deere to Outperform from In Line and set an $813 price target, indicating confidence in the company’s outlook and potential upside. Evercore ISI upgrades Deere & Company
• Positive Sentiment: Yamaha collaboration: Deere and Yamaha Motor announced a collaboration on future side-by-side vehicles. The partnership could broaden Deere’s recreational and utility-vehicle offerings, although financial details and timing were not disclosed. Yamaha Motor and Deere collaboration
• Neutral Sentiment: Long-term technology exposure: Deere continues to be cited as an agriculture-technology company with exposure to precision farming and smarter food-production systems. This supports its long-term growth narrative but is not a new earnings catalyst. AgTech and food innovation stocks
• Negative Sentiment: Regulatory inquiry: The Federal Trade Commission and Department of Agriculture are seeking public information about possible barriers to purchasing, servicing and repairing agricultural equipment. The inquiry raises the risk of increased scrutiny, changes to business practices or future regulation across the sector. FTC and USDA farm-equipment inquiry
• Negative Sentiment: Higher interest rates: A sharp rise in Treasury yields has pressured industrial stocks, particularly manufacturers of expensive equipment commonly purchased with financing. Higher borrowing costs may weaken equipment demand and increase financing pressure for Deere’s customers. Rising Treasury yields pressure industrial stocks

About Deere & Company

Deere & Company, commonly known as John Deere, is a global manufacturer of agricultural, construction, forestry and turf-care equipment. The company's products include tractors, combines, planters, sprayers, harvesting equipment, earthmoving machinery, forestry equipment, commercial and residential lawn-care products, and related technology solutions.

Deere operates through businesses serving production and precision agriculture, small agriculture and turf, and construction and forestry markets.

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