Deere price target raised to $555 from $513 at Oppenheimer

Oppenheimer raised the firm’s price target on Deere (DE) to $555 from $513 and keeps an Outperform rating on the shares. Unpacking the headline beat and widened guide, the firm views the low-end of updated guidance representing a downside scenario rather than a worsening outlook. Indeed, the large Agriculture outlook modestly improved on strong Q2 results, narrowed F/X headwinds, and improving sentiment in Brazil/Europe. Oppenheimer would not be surprised to see short-term profit-taking as valuation approaches “too rich” for some. However, it anticipates a sustained grind higher as investors are willing to endow Deere a higher cycle-transition multiple amid potential earning uplift from technology penetration.