Credit Suisse Sees Demand Trends Strong Across Deere's Portfolio

  • Credit Suisse’s analyst, Jamie Cook, met with Deere & Company DE Investor Relations team, including Deputy Financial Officer Josh Jepsen and Head of Investor Relations, Brent Norwood.
  • The analyst maintained his Outperform rating on the shares and the price target of $472 post the meeting.
  • Cook believes that Deere’s technological adoption is accelerating. Higher input costs and resource scarcity are driving technology adoption, resulting in significant savings and the potential to manage resources better.
  • According to the analyst, as the precision AG business model evolves, Deere sees a greater opportunity to monetize the value it provides for its customers through pay per use or per acre rather than a point of sale. He argues that increasing the price per acre or use over time will assist in decreasing the amplitude of cycles.
  • Cook expects that shifting to a pay-per-acre or pay-per-use model will increase Deere’s market share among smaller farmers and contractors by eliminating hefty upfront expenses, which have traditionally been a deterrent for smaller clients.
  • The order book for 2023 appears to be quite promising. The supply chain issues persist, but they are in line with expectations.
  • Price Action: DE shares are trading lower by 2.71% at $326.14 on the last check Monday.

Posted In: BriefsAnalyst ColorNewsAnalyst Ratings

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.