Deere stock rating initiated at Outperform by RBC Capital with $542 target

Investing.com - RBC Capital initiated coverage on Deere (NYSE:DE) with an Outperform rating and a price target of $542.00 on Tuesday. According to InvestingPro data, the company currently trades at a market capitalization of $125 billion, with analyst targets ranging from $440 to $724.

The investment firm identified Deere as the leading global agriculture equipment original equipment manufacturer (OEM) that has successfully leveraged its scale and market position to lead the industry’s transition toward technology-enabled agriculture.

RBC Capital noted that Deere has invested significant resources in technology and research and development to develop a comprehensive range of data-enabled offerings for the agricultural sector.

The firm highlighted that increased adoption of Deere’s hardware and connectivity offerings helps strengthen its competitive moat and embed customers, particularly farmers, into its ecosystem.

According to RBC Capital, these technological advancements also help Deere reduce the cyclicality of its financial results over time, providing more stability to its business model.

In other recent news, Deere & Company has been the subject of several significant developments. UBS upgraded Deere’s stock rating from Neutral to Buy, citing expectations of an earnings recovery starting in fiscal 2027. The investment bank adjusted its price target to $535.00. Additionally, Deere’s subsidiary, Deere Funding Canada Corporation, issued $500 million in 4.15% notes due in 2030, guaranteed by Deere & Company. Truist Securities also raised its price target for Deere to $609.00, maintaining a Buy rating, and noted that the company is at a cyclical trough. On the other hand, DA Davidson lowered its price target to $580.00 while keeping a Buy rating, pointing to a downturn in global agricultural equipment markets but suggesting a potential industry trough. Truist Securities further adjusted its price target to $602.00 due to tariff impacts, although Deere’s third-quarter results exceeded expectations by 4%. The company has increased its full-year tariff cost guidance to $600 million from $500 million, reflecting the ongoing challenges.

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