J.P. Morgan raises Deere & Co’s target price to $525 from $460

J.P. Morgan raises Deere & Co’s target price to $525 from $460

J.P. Morgan Adjusts Deere & Co. Price Target Amid Mixed Analyst Outlook

J.P. Morgan has revised its price target for Deere & Co. (DE) to $500 from $470, reflecting renewed optimism about the agricultural machinery giant's long-term prospects. However, this adjustment contrasts with other recent analyst actions, as the broader analyst community remains divided on near-term risks and growth potential.

The consensus analyst price target has edged higher to $525.40 from $524.95, driven by bullish sentiment around the company's technology-driven growth initiatives and improving cost management. RBC Capital initiated coverage with an "Outperform" rating and a $542 price target, citing Deere's investments in precision agriculture and data-enabled products as key differentiators. Similarly, UBS upgraded Deere to "Buy," anticipating a positive earnings inflection by 2027 amid stabilizing agriculture fundamentals.

Despite these positive notes, challenges persist. J.P. Morgan also highlighted reduced sector targets due to updated Section 232 tariffs, which have increased Deere's steel and aluminum costs by up to $600 million annually. Evercore ISI and DA Davidson similarly trimmed their price targets, reflecting caution around global market downturns and earnings cyclicality.

Recent news further complicates the outlook. The U.S. Department of Agriculture and Justice have launched an antitrust investigation into Deere and crop input suppliers, contributing to share price volatility. Meanwhile, lower crop prices and tariff pressures have dampened farmer demand for new equipment.

Looking ahead, analysts remain split. Bullish cases emphasize Deere's competitive moat, R&D momentum, and potential benefits from biofuel policies, while bearish views underscore sector-wide headwinds and valuation risks. Investors are advised to monitor upcoming earnings reports and regulatory developments as key indicators of Deere's trajectory.

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