Deere's Resilience Shines Through Tariffs, Analysts Raise Price Forecasts

Several analysts raised the terms forecast for Deere & Company (NYSE:DE) pursuing the second-quarter results reported connected Thursday.

The institution reported nett income and gross fell 16% year-over-year to $12.76 billion, topping the consensus estimate of $10.79 billion.

The institution expects FY25 nett income to beryllium betwixt $4.75 billion and $5.5 billion (prior $5 cardinal and $5.5 billion).

Raymond James expert Tim Thein raised the terms forecast from $530 to $560 portion keeping an Outperform rating.

Also Read: Green Light For Deere: Analyst Sees Growth Ahead Despite Tariff Concerns

The expert revised the exemplary to incorporated the stronger-than-anticipated second-quarter operating results and the inclusion of astir $400 cardinal successful tariff-related costs anticipated for the 2nd fractional of the year.

Thein notes that the largest segment, Production & Precision Agriculture (PP&A), is expected to acquisition the smallest nonstop percent interaction from these tariffs.

This highlights DE’s highly vertically integrated operation and sourcing approach, which apt contributes to its beardown comparative competitory lasting successful North America, adds the analyst.

The expert says the astir astonishing facet of the caller 4th and outlook is the PP&A borderline guidance for the 2nd fractional of 2025.

The expert noted that portion the astir $100 cardinal interaction from tariff-related costs was a caller factor, and they acknowledged the headwind related to geographic premix (partially owed to Europe’s volumes exceeding those of North America), they believed the implied decremental borderline presumption of astir 80% would yet beryllium to beryllium conservative.

Thein lowered FY25 EPS estimates to $19.25 from $19.80, arsenic the affirmative interaction of the stronger second-quarter operating show is much than offset by reduced borderline assumptions for the 2nd fractional of the year.

DE Davisdon expert Michael Shlisky maintained the Buy standing with a terms forecast of $542.

The expert writes that Deere’s accumulation and Precision Ag revenues bushed their estimates by astir 6%, boosting the premix and starring to Equipment operating nett of astir 10% supra their forecast.

While guidance astatine the low-end was somewhat widened (common amid tariff uncertainty), currency travel projections remained stable, adds the analyst.

The expert continues to spot Global Ag arsenic comparatively little risky than discretionary sectors, and DE’s beardown execution could support its leadership.

Investors tin summation vulnerability to the banal via iShares MSCI Agriculture Producers ETF (NYSE:VEGI) and Global X AgTech & Food Innovation ETF (NASDAQ:KROP).