Two 59%+ winners, four above 25% in Aug – How this AI model keeps picking winners
Investing.com - Truist Securities lowered its price target on Deere (NYSE:DE) to $602.00 from $619.00 on Friday, while maintaining a Buy rating on the agricultural equipment manufacturer. According to InvestingPro data, analyst targets for Deere range from $460 to $750, with the stock currently trading at elevated valuation multiples relative to its peers.
The price target adjustment follows Deere’s third-quarter results, which beat consensus estimates by 4% despite facing a $200 million headwind from tariffs during the quarter. The company has experienced a $300 million tariff impact year-to-date, prompting it to raise its full-year tariff cost guidance to $600 million from $500 million. InvestingPro data shows Deere maintains strong financial health with a current ratio of 2.19, indicating sufficient liquidity to manage these headwinds.
Deere shares traded down 7% following the earnings report, even as the company showed progress in reducing channel inventory. North American large tractors inventory decreased 45% year-over-year, while combines fell 25%. Small AG and Turf inventories declined 30% year-over-year and 15% quarter-over-quarter.
For fiscal year 2025, Deere lowered the high end of its net income guidance by $0.25 billion, reflecting increased tariff rates on Europe, India, and steel and aluminum products. This was partially offset by a reduction in the expected tax rate to 19-21% from the previous 20-22% range.
Truist Securities noted some positive indicators, including better-than-expected retail sales for tractors in Europe and improving demand in North America turf and compact equipment, while maintaining its view that 2025 represents the trough for Deere’s earnings per share. For deeper insights into Deere’s financial health, valuation metrics, and growth prospects, access the comprehensive Pro Research Report available exclusively on InvestingPro, covering over 1,400 top US stocks with expert analysis and actionable intelligence.
In other recent news, Deere & Company reported its third-quarter 2025 earnings, which exceeded expectations. The company posted an earnings per share (EPS) of $4.75, surpassing the forecasted $4.58, and reported revenue of $10.6 billion, exceeding the anticipated $10.35 billion. Despite these stronger-than-expected results, the stock experienced a decline in pre-market trading due to investor concerns over broader market trends and sector-specific challenges. Additionally, Oppenheimer raised its price target for Deere to $566.00 from $560.00, maintaining an Outperform rating. The price target adjustment followed Deere’s quarterly report, which led to a stock selloff. Oppenheimer noted that this selloff created an attractive entry point for investors, particularly as positive indicators emerge in European and Latin American markets. These developments highlight the complex dynamics affecting Deere’s stock performance amidst varying market conditions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.