Stock Price & Analysis

Based on the provided data, I'll analyze whether to buy or sell DE stock with a focus on recent market performance and analyst sentiment.

Technical Analysis The stock is showing positive momentum with a recent uptrend, closing at $455.44 on January 17, 2025, with a significant gain of 3.72% during regular trading hours. The RSI of 65.82 indicates bullish momentum while staying below overbought territory. The positive MACD of 1.15 suggests continued upward momentum.

Analyst Consensus Recent analyst actions show mixed sentiment:

• JP Morgan raised price target to $470 (Jan 15, 2025)
• Citigroup lowered target to $430 (Jan 14, 2025)
• Truist Securities maintains Strong Buy with $550 target (Dec 19, 2024)

Technical Support/Resistance Levels

• Fibonacci resistance levels: R1: $449.38, R2: $462.17, R3: $482.88
• Fibonacci support levels: S1: $407.96, S2: $395.16, S3: $374.45
• Pivot point: $428.67

Based on the technical analysis and recent analyst actions, DE stock appears to be a HOLD at current levels. While showing positive momentum and trading above key support levels, the mixed analyst sentiment and potential resistance around $462 suggest limited immediate upside. Consider taking profits if the stock approaches the R2 resistance level of $462.17 or adding positions on pullbacks near the pivot point of $428.67.

Based on the provided data and market context, here's the price prediction for Deere & Company (DE) stock in 2025:

DE stock is expected to reach $485-495 by mid-2025, representing a ~7-9% upside from current price of $455.44. The projection is supported by three key factors:

1. Strong technical momentum with the stock breaking out above key resistance levels and showing bullish RSI reading of 65.82, indicating healthy upward momentum without being overbought.

2. Favorable valuation metrics relative to historical averages, with the stock trading at reasonable multiples despite recent price gains.

3. Operational improvements and margin expansion, with management successfully protecting profitability even during cyclical downturns.

The stock has shown resilience by maintaining strong margins despite agricultural market headwinds, with Q4'24 operating margins at 13.1% and full year margins at 18.2%. While management guides for some sales decline in FY'25, their track record of executing well on protecting margins provides confidence in the stock's upside potential.

The S1 support level for DE Stock is $413.97 ,The R1 resistant level for DE Stock is $472.4.

As of the end of day on 2025-01-24, the price of DE Stock was $478.99.

The target price for DE Stock according to analyst rating is 473.58, with the highest price target at 550.00 and the lowest at 400.00. Analysts have a Moderate Buy rating on DE Stock overall.

The market cap of DE is $130.4B.

Based on the provided data and current market conditions, let's analyze whether DE (Deere & Co) is overvalued.

Valuation Analysis The stock shows concerning valuation trends with PE ratio expanding from 11.47x to 15.92x over the past year, significantly above its historical average. EV/EBITDA has also increased from 9.58x to 11.54x, indicating premium valuation levels.

Financial Performance Revenue and profitability metrics show weakening trends. Net margin declined from 14.35% to 11.15% over the past four quarters, while ROE dropped from 45.88% to 31.82%, suggesting deteriorating operational efficiency.

Analyst Sentiment Recent analyst actions indicate mixed views but trending negative. JP Morgan maintained Hold rating with $470 target, while Citigroup downgraded their target from $470 to $430, suggesting growing concerns about valuation levels.

Market Position The company's debt-to-equity ratio remains elevated at 284.38%, though stable year-over-year, indicating significant leverage that could become problematic in a higher interest rate environment.

Conclusion DE appears overvalued based on expanding multiples, deteriorating margins, and weakening operational metrics, while carrying significant leverage in a high interest rate environment.

Deere & Company is engaged in the delivery of agricultural, construction and forestry equipment. The Company defines, develops and delivers global equipment and technology solutions. Its segments include production and precision agriculture (PPA), small agriculture and turf (SAT), construction and forestry (CF), and financial services (FS). PPA segment provides solutions for production-scale growers of large grains, small grains, cotton and sugarcane. SAT segment provides solutions for dairy and livestock producers, high-value crop producers, and turf and utility customers. CF segment provides 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, SAT equipment, and construction and forestry equipment. Its technology-enabled products include John Deere Autonomous 8R Tractor and E-Power Backhoe.

Based on the provided data and market context, here's the price prediction for Deere & Company (DE) stock by 2030:

Deere stock is projected to reach $680-720 by 2030, representing a 50-58% increase from current levels around $455, driven by the company's strong leadership in agricultural automation and precision farming technology.

The company's strategic focus on technological innovations in automation and its dominant market position in the agricultural equipment sector positions it well for long-term growth despite near-term cyclical headwinds.

This projection is supported by:

1. Strong market position with over 75% of products sold in US being assembled domestically, providing resilience against potential trade barriers

2. Continued investment in precision agriculture technology, with this segment expected to generate around $5 billion in annual revenue

3. Effective capital allocation strategy including share buybacks that have reduced share count by over 20% in the past decade, boosting per-share metrics

However, investors should note that Deere faces near-term challenges with management projecting lower earnings in fiscal 2025 of $5-5.5 billion, down from $7.1 billion in fiscal 2024. But this cyclical downturn appears to be priced into current valuations, with potential for earnings recovery starting in fiscal 2026.

DE has a total of 83000 employees.