Deere: The Perfect Storm
- John Deere's revenue and profits surged in recent years due to a number of tailwinds.
- Falling commodity prices, high customer debt levels, and geopolitical uncertainty are likely to impact demand for machinery going forward.
- While Deere's margins have held up fairly well so far, declining revenue and pricing pressure could soon change this.
- Deere's valuation may appear reasonable, but this requires the company to maintain revenue and margins far above historical levels.
Maksim Safaniuk
Deere & Company (NYSE:DE) is a strong company, but it is important to recognize that a number of favorable factors have converged in recent years, driving revenue and profits significantly higher. While Deere should remain a leader in its field, the
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