BUZZ-Street View: Deere appears shielded amid gloomy farm equipment demand

Reuters11-22

** Deere & Co forecast its 2025 profit below market expectations but reported an upbeat quarterly earnings on Thursday, as lower production costs helped cushion a downturn in farm equipment demand

** Median PT of 24 brokerages covering the stock is $449 - LSEG data

NORTH AMERICAN AGRICULTURAL MARKET TO REMAIN WEAK

** Barclays ("overweight," PT: $475) says for the stock to work from here it will be less about the agricultural industry getting better and "more about Deere meeting and beating"

** Wolfe Research ("outperform," PT: $410) says while it is tough to predict when the agricultural industry would bounce back, DE is well positioned to benefit in the long-run for improved profit margins and reduced cyclicalities due to the adoption of precision agriculture technologies

** Jefferies ("buy," PT: $510) says North American agricultural market continues to show weakness, which will likely remain through 2025, but the steps DE took to reduce costs and improve operations over the past cycle should help maintain profit margins, even with lower sales volumes

** Daiwa Capital Markets ("outperform," PT:$495) says DE continues to execute on its precision agricultural technology

** However, says agricultural equipment business in Europe and construction machinery business in North America remains a weak point

(Reporting by Joel Jose in Bengaluru)

((joeljose@thomsonreuters.com))

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