Deere price target raised to $398 from $364 at Bernstein

Bernstein analyst Chad Dillard raised the firm’s price target on Deere to $398 from $364 and keeps a Market Perform rating on the shares. The firm notes Deere reported Q1 net income of $1.9B, 19% ahead of street, and raised 2023 net income guidance to $9B at the midpoint. By its estimates, more than 90% of the guidance raise came from higher net price, most of which came from cutting the sales incentive budget, while the volume cut was 15% a headwind. On one hand, these results show the power of Deere and its advantaged market structure. On the other, it shows a business becoming increasingly reliant on price to drive growth, Bernstein says.