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Investing.com - UBS has reiterated its Buy rating on Deere (NYSE:DE) stock with a price target of $535.00, citing positive trade developments for U.S. farmers. This target sits between the analyst range of $440-$724, according to InvestingPro data, which also indicates Deere is currently trading above its Fair Value estimate.
UBS analyst Steven Fisher noted recent trade updates as beneficial for both American farmers and Deere, including China’s October 30th agreement to purchase 12 million metric tons of U.S. soybeans by year-end and 25 million tons annually for the next three years. This positive development comes as Deere faces revenue challenges, with InvestingPro data showing a 20.9% revenue decline over the last twelve months.
The firm highlighted that soybean prices have risen approximately 3% following these developments, reaching their highest level since July 2024, though it will take time for this to translate into increased machinery sales. Despite current headwinds, Deere maintains strong fundamentals with a current ratio of 2.23, indicating liquid assets exceed short-term obligations.
On the equipment front, Deere has reportedly secured an agreement to sell $3-5 billion worth of machinery to Kazakhstan and Uzbekistan, though specific details remain to be determined. This potential deal would be significant for the company, which generated $44.25 billion in revenue over the past year.
Despite maintaining a positive outlook, UBS expects Deere’s guidance for 2026 to fall below consensus estimates, with the firm projecting 2026 to be the final year of Deere’s earnings downturn before a recovery in 2027. Investors watching Deere’s upcoming earnings report on November 19 can access comprehensive analysis and 15+ additional insights through InvestingPro’s detailed Research Report.
In other recent news, Deere & Company has seen several notable developments. UBS upgraded its stock rating for Deere from Neutral to Buy, with a price target adjustment to $535, citing expectations of an earnings recovery beginning in fiscal 2027. RBC Capital also initiated coverage on Deere, assigning an Outperform rating and setting a price target of $542, highlighting the company’s leadership in technology-enabled agriculture. Additionally, Truist Securities raised its price target for Deere to $609, maintaining a Buy rating, as it assesses the company’s major markets to be at a cyclical trough.
Furthermore, Deere Funding Canada Corporation, a subsidiary of Deere & Company, has agreed to issue $500 million in 4.15% notes due in 2030. These notes, guaranteed by Deere & Company, will have interest paid semi-annually starting in 2026. UBS reiterated its Buy rating with a $535 target, following discussions with Deere’s management on regional market trends and inventory strategies. These developments reflect the current strategic and financial maneuvers by Deere & Company in the marketplace.
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