UBS Maintains Buy Rating on Deere Amid Farm Equipment Downturn
Deere & Company (NYSE:DE) reported better-than-expected Q3 results despite ongoing challenges in the agricultural equipment sector. The company's worldwide sales rose to $12.6 billion, and net income reached $1.38 billion for the quarter. UBS analyst Steven Fisher has maintained a 'Buy' rating on Deere but lowered its price target from $732 to $728. He anticipates 2026 as potentially marking the bottom of the current cycle with signs pointing toward stabilization in used-equipment inventories and early-order trends. Fisher expects 2027 to be a transition year, followed by resilient growth in 2028 driven partly by Deere's technological advancements. These include precision agriculture solutions that enhance customer productivity and differentiate the company from competitors. However, risks remain due to ongoing pressures on farm economics, lower volumes in key markets like Brazil and Europe, as well as potential tariff costs. Deere’s short-interest profile is relatively favorable compared to peers such as CNH Global (CNHI), indicating stronger investor confidence during this downturn.
Topics: agricultural equipment buy recommendation cyclical downturn revenue growth