In a report released yesterday, Ann Duignan from J.P. Morgan maintained a Hold rating on Deere (DE – Research Report), with a price target of $540.00.
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Ann Duignan’s rating is based on a combination of factors influencing Deere’s current market position and future prospects. Despite Deere’s recent earnings surpassing expectations, the company has slightly lowered its earnings guidance for fiscal year 2025 due to tariff impacts. This adjustment reflects ongoing macroeconomic uncertainties and tariff challenges, which have positioned Deere as a relatively safe investment in the short term.
However, Ann Duignan notes that Deere’s valuation is nearing all-time highs and could face scrutiny as the company approaches its fiscal year 2026 guidance. The potential for earnings growth in 2026 remains uncertain, particularly given the historical context of significant EPS growth following previous troughs. While Deere’s stock currently benefits from a premium valuation, the sustainability of this premium is contingent upon improved earnings growth projections. Consequently, the Hold rating reflects a balanced view of the risks and rewards associated with Deere’s stock under current market conditions.