Deere’s FY24 expectations likely above investor estimates, says DA Davidson

DA Davidson keeps a Buy rating and $493 price target on Deere after its Q4 results and outlook last week. The company’s Q4 topped consensus, but the real earnings beat was Deere’s commentary that FY24 would represent “mid-cycle” earnings, the analyst tells investors in a research note. The stock is also only trading at enterprise value of about 10.5-times expected mid-cycle EBITDA, while the midpoint/mid-cycle valuation based on the 5-year historical range is 14.5-times, the firm added.