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On Wednesday, Freedom Broker analysts upgraded Deere stock (NYSE: NYSE:DE) from a sell to a hold rating. This change is accompanied by a new price target of $484, up from the previous target. The decision follows Deere’s second-quarter financial results for fiscal year 2025, which showed declines across all key metrics. According to InvestingPro data, the stock is trading near its 52-week high of $533.78, with a year-to-date return of 21.53%.
The company’s earnings per share exceeded expectations, attributed to operational discipline. However, Deere has lowered its profit forecast, citing ongoing challenges such as tariffs, high dealer inventory levels, and weak demand. InvestingPro data shows 13 analysts have revised their earnings downwards for the upcoming period, with revenue expected to decline by 26% this year.
Freedom Broker analysts emphasized a conservative outlook on Deere stock, despite the increase in the price target. The revised price target is based on a discounted cash flow valuation approach.
Deere’s financial performance continues to face pressure from external factors. While the company managed to beat EPS expectations, the overall outlook remains cautious.
In other recent news, John Deere has completed the acquisition of Sentera, a company known for its high-resolution remote imagery solutions for agriculture. This acquisition aims to strengthen John Deere’s technology offerings, allowing farmers to enhance efficiency, profitability, and sustainability through advanced data-driven approaches. Sentera’s technology, including cameras compatible with major drone platforms, will be integrated into John Deere’s existing tools to provide detailed plant health data over large areas. Despite the acquisition, Sentera will continue supplying cameras to drone manufacturers and maintain its customer base, while ensuring compatibility with other drone imagery providers through the John Deere Operations Center.
Meanwhile, analysts have updated their financial outlooks for Deere & Company. BMO Capital Markets raised its price target from $425 to $460, maintaining a Market Perform rating, citing adjustments in future earnings estimates. Similarly, Citi increased its price target to $550 from $450, maintaining a Neutral rating, reflecting improved margin projections for Deere’s Production & Precision Agriculture segment. Bernstein also raised its price target to $548 from $465, noting Deere’s second-quarter earnings surpassed expectations by 19% in key financial metrics. Despite these upgrades, analysts remain cautious due to challenges such as high inventories of used equipment and a subdued forecast for farmer profitability.
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