Market analysts have issued a fresh wave of assessments for agricultural machinery giant Deere & Company, revealing a clear split in sentiment. The company’s shares were trading near $512, reflecting a gain of approximately 2.5% on the day.
Strategic Moves and Financial Outlook
Beyond the analyst commentary, strategic developments are in focus. Deere is anticipated to finalize its acquisition of construction technology firm Tenna in February, a move designed to bolster its digital capabilities and service revenue within the construction sector. Concurrently, a significant insider transaction has drawn attention. On January 8, CEO John C. May II sold shares worth roughly $20.8 million through a pre-arranged trading plan.
The management’s current net income forecast for fiscal 2026 stands between $4.0 and $4.75 billion. This range is viewed by the company as a potential cyclical low point for large agricultural equipment, with ongoing margin pressure from tariffs cited as a contributing factor. Deere’s stated strategy emphasizes cost discipline and pursuing growth in its small agriculture and construction & forestry divisions.
Should investors sell immediately? Or is it worth buying Deere?
Investors are now looking ahead to the upcoming quarterly report for the period ending January 31, expected around February 12. The current consensus estimate points to earnings per share of $1.90.
A Spectrum of Analyst Ratings
The analyst community is sending mixed signals. On the bullish end of the spectrum, Oppenheimer reaffirmed its Outperform rating and a $531 price target, citing discussions with the company’s chief technology officer. UBS maintained a Buy recommendation with a $535 target, projecting an earnings recovery beginning in late 2026 or 2027. DA Davidson was even more optimistic, raising its target to $580 and highlighting the company’s share repurchase program.
A more cautious stance is held by other firms. Both BMO Capital and Bernstein rate the stock at Market Perform, with price objectives of $460 and $521, respectively. Bank of America also remains neutral, expressing a preference for competitor Caterpillar. Among the sixteen analysts rating the stock a Buy, the average price target calculates to $523.38.
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