Deere Sets New Target of 10% Net Sales CAGR from 2025 to 2030
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 08 2025
0mins
Should l Buy DE?
"Despite navigating through significant market volatility. Looking ahead, we've set a new target to grow our business at a 10% net sales CAGR from 2025 to 2030, reflecting our commitment to accelerate customer value delivery. Combined with the growth that we've already delivered since the start of the decade, our targeted sales growth CAGR from 2020 to 2030 would exceed global GDP projections," executives from the company stated during Deere's ongoing investor day meeting. Deere shares are up about 1% to $481.70 in mid-morning trading as the investor day event continues.
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Analyst Views on DE
Wall Street analysts forecast DE stock price to fall
15 Analyst Rating
8 Buy
7 Hold
0 Sell
Moderate Buy
Current: 596.040
Low
458.00
Averages
514.25
High
560.00
Current: 596.040
Low
458.00
Averages
514.25
High
560.00
About DE
Deere & Company is engaged in the delivery of agricultural, construction and forestry equipment. Its segments include production and precision agriculture (PPA), small agriculture and turf (SAT), construction and forestry (CF), and financial services (FS). PPA segment defines, develops and delivers global equipment and technology solutions for production-scale growers of large grains, small grains, cotton and sugarcane. SAT segment defines, develops and delivers global equipment and technology solutions for dairy and livestock producers, high-value and small acreage crop producers, and turf and utility customers. CF segment defines, develops and delivers a range of machines and technology solutions organized along the earthmoving, forestry and roadbuilding production systems. FS segment finances sales and leases by John Deere dealers of new and used production and precision agriculture equipment and others. Its products include John Deere Autonomous 8R Tractor and E-Power Backhoe.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Fed's Flexibility: The suspension of tariffs would provide the Federal Reserve with greater flexibility to potentially lower interest rates, which would be positive news for many stocks, especially given that inflation has risen due to tariffs.
- Temporary Market Rebound: Although a tariff suspension could trigger an initial market rebound, the momentum may be fleeting due to other factors such as geopolitical risks, necessitating caution among investors.
- Diversified Investment Strategy: In an uncertain market environment, investors should ensure their portfolios are well-diversified to cushion against underperforming sectors, with a long-term mindset being crucial to navigate market volatility.
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- Federal Reserve Policy Flexibility: The suspension of tariffs could provide the Federal Reserve with more room to lower interest rates, further stimulating the stock market, particularly as Trump's tariffs have been identified as a contributing factor to inflation.
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- Construction and Forestry Growth: Despite agricultural struggles, Deere's construction and forestry segment achieved a 34% year-over-year revenue growth, primarily driven by demand for data center construction, highlighting the company's potential in non-cyclical markets.
- Significant Order Backlog: The construction and forestry division saw a 50% increase in order backlog, indicating strong demand for heavy equipment, particularly in the context of AI infrastructure expansion, which enhances Deere's market position.
- Earnings Guidance Raised: Deere raised its 2023 earnings guidance to $4.5 billion to $5.0 billion, despite facing approximately $1.2 billion in annual tariff-related costs, with expected operating margins recovering to a range of 9% to 11% for the year, demonstrating management's confidence in future performance.
See More
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- Significant Order Backlog Increase: The segment's order backlog surged by 50%, reflecting robust demand for heavy equipment, particularly in the context of AI infrastructure expansion, further solidifying Deere's competitive position in the market.
- Agricultural Cycle Bottoming: Despite challenges in the agricultural cycle, which is expected to bottom this year, a 24% revenue growth in the small ag and turf segment effectively offset a modest 3% gain in the flagship production and precision ag segment, pushing total revenue to $9.6 billion, well above the consensus estimate of $7.6 billion.
- Earnings Guidance Raised: Deere raised its full-year earnings guidance to $4.5 billion to $5.0 billion and increased its operating cash flow projection by $500 million, demonstrating confidence in future growth despite facing $1.2 billion in tariff-related costs.
See More
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- Strong Performance from Leaders: Stocks such as Sherwin-Williams, Caterpillar, Home Depot, and Goldman Sachs led the rally, indicating investor confidence in these companies and suggesting expectations for economic recovery.
- Weakness in Oil Stocks: Despite the overall market rebound, oil companies like Chevron and Diamondback faced significant pressure, highlighting investor concerns over Middle Eastern supply disruptions and the ongoing uncertainty in the sector.
See More
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- Stock Price Impact: Shares of Deere have fallen approximately 15% since mid-February, which analysts believe has reduced downside risk and brought valuations closer to fair levels, thus providing a more attractive entry point for investors.
- Future Growth Expectations: Jefferies anticipates that Deere will achieve about 75% total growth in the upcoming cycle, primarily driven by higher volumes, indicating the company's strong competitive position in the market despite a smaller contribution from pricing.
- Profitability Outlook: The firm projects incremental margins of around 35% over the next three years, which will further enhance the company's profitability, leading Jefferies to set a price target of $550, reflecting an optimistic outlook on the company's future performance.
See More
