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On Friday, DA Davidson reaffirmed its Buy rating on Deere & Company (NYSE:DE) shares, maintaining a price target of $542.00. Analysts at the firm highlighted Deere’s second quarter fiscal year 2025 results, which surpassed both their own projections and the consensus. Notably, the Production and Precision Agriculture revenues exceeded DA Davidson’s model by approximately 6%, positively impacting the product mix and contributing to Equipment operating profits that were around 10% higher than anticipated. The company, with a market capitalization of $143 billion and P/E ratio of 25.39x, maintains strong financial health metrics.
Despite a slight widening of the guidance’s lower end, a move seen across various companies this earnings season due to tariff uncertainties, Deere’s performance is considered to be in line with industry norms. The unchanged cash-flow projections were also noted, underscoring a stable financial outlook for the company.
DA Davidson’s analysts underscored the agricultural sector’s relative safety compared to discretionary or less essential industries. They commended Deere’s strong execution, which they believe could continue to set the standard within the industry. Based on these observations, the analysts expect Deere shares to experience a positive start to the trading day.
In other recent news, Deere & Company reported a strong financial performance for the second quarter of 2025, with earnings per share (EPS) of $6.64, surpassing the forecasted $5.56. The company’s revenue also exceeded expectations, reaching $12.76 billion against a forecast of $10.98 billion. Despite this positive outcome, Deere revised its net income forecast for fiscal year 2025 downward by $125 million, citing tariffs as a significant headwind. Analysts at Truist Securities raised the price target for Deere stock to $619, maintaining a Buy rating, while Raymond (NSE:RYMD) James increased their price target to $560 and kept an Outperform rating. Truist Securities noted that Deere’s second-quarter earnings surpassed consensus EPS estimates by 19%, driven by stronger sales and improved margin performance in their Production & Precision Ag and Small Ag & Turf segments. However, the Construction & Forestry segment did not meet sales and profitability expectations. Raymond James highlighted the resilience of Deere’s largest segment, Production & Precision Agriculture, in the face of tariff-related costs. Both firms expressed optimism about Deere’s future earnings growth, supported by expectations of year-over-year volume growth across all operating segments.
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