Deere & Company (DE) Earns Outperform Rating Amid Industry Headwinds

Deere & Company (NYSE:DE) ranks among the stocks in Bill Gates’ portfolio that analysts are watching. On October 21, RBC Capital began coverage of Deere & Company (NYSE:DE) with a price target of $542 and an Outperform rating. The firm states that Deere is the top original equipment manufacturer (OEM) of agricultural equipment worldwide.

According to RBC Capital, Deere & Company (NYSE:DE) has made significant investments in R&D and technology to provide a wide range of data-enabled products for the agriculture industry. Additionally, the firm highlighted Deere’s construction and forestry segment as a long-term margin driver with precise machinery and roadbuilding technology, strengthened by its 2017 acquisition of Wirtgen.

Although Deere’s long-term prospects continue to be encouraging, RBC points out that 2025 may prove to be a cyclical low point for earnings as farmer mood is impacted by record U.S. harvests, declining crop prices, and ongoing trade problems.

In fiscal 2026, Deere’s revenue is expected to climb by 4.5% to $47.1 billion, while its adjusted EPS is projected to improve to $20.86 from $18.53. As improvements in productivity and operating leverage gain traction, segment profitability is predicted to improve significantly, driven by a 17.5% increase in operating income.

Deere & Company (NYSE:DE) is an American company that manufactures agricultural, heavy, and forestry machinery, diesel engines, heavy equipment drivetrains, and lawn care equipment. The company also provides financial services and engages in other business operations.

While we acknowledge the potential of DE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.

Disclosure: None. This article is originally published at Insider Monkey.