Green Light For Deere: Analyst Sees Growth Ahead Despite Tariff Concerns

Deere & Company DE shares are trading higher at the last check on Thursday after the company reported second-quarter net sales and revenue fell 16% year-over-year to $12.76 billion, topping the consensus estimate of $10.79 billion.

The company expects FY25 net income to be between $4.75 billion-$5.5 billion (prior $5 billion and $5.5 billion).

Goldman Sachs analyst Jerry Revich reiterated a Buy rating and price forecast of $583.

The analyst’s rating reflects expected Machinery capital stock growth, end of new equipment destocking, faster Precision Ag adoption, and reduced tariff margin risk.

The analyst views Deere's second-quarter results as consistent with adjusted expectations following the Machinery earnings announcement.

This reflects a margin guidance reduction of about 100 bps, likely due to tariffs impacting Construction & Forestry, and a second-quarter earnings beat on 35% decremental margins (vs. GS: 46% estimate).

Also, the analyst highlighted dealers increasing inventories ahead of normal seasonality for the first time in seven quarters, suggesting the end of destocking.

Investors can gain exposure to the stock via iShares MSCI Agriculture Producers ETF VEGI and Global X AgTech & Food Innovation ETF KROP.

Price Action: DE shares are up 3.08% at $522.15 at the last check on Thursday.

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