J.P. Morgan analyst Tami Zakaria has maintained their neutral stance on DE stock, giving a Hold rating on February 5.
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Tami Zakaria’s rating is based on several key considerations. Despite the stock’s recent performance, there are concerns about Deere’s future earnings potential, particularly given the expected weak earnings and margins in the first half of 2025. The market environment suggests that while there could be some upside risks, such as positive commentary and financial aid to farmers, there are also notable challenges, including proposed cuts to crop subsidies and potential tariffs.
Additionally, the company’s financial projections for the second quarter seem overly optimistic according to Zakaria’s analysis, with expectations of reduced inventory levels and lower-than-consensus earnings. While Deere’s stock trades at a premium compared to its peers, this is balanced by the uncertainty surrounding the company’s ability to achieve its financial goals in the near term. Therefore, the Hold rating reflects a balanced view of the potential risks and rewards associated with the stock.
In another report released on February 5, Bernstein also maintained a Hold rating on the stock with a $476.00 price target.