Deere & Co: BUY At €434.80 (+14.22%).pdf

- Company: Deere & Company (DE)
- Last Closing Price: $380.66
- Target Price: $434.80 (+14.22%)
- GICS Sector/Sub-Industry: Industrials/Construction & Farm Machinery
- Market Cap: $110.571 million
- Key Executives: John C.May (CEO), Joshua A.Jepsen (CFO)
- Business: Global leader in agricultural, construction, and forestry machinery, with a strong brand and high-quality products.
- Revenue Sources: Production and precision agriculture, small agriculture & turf, construction & forestry, and financial services.
- Main Markets: United States (55%), Latin America (13%), Western Europe (12%).
- Industry Outlook:
- Agricultural Machinery Market: USD 213.4 billion in 2023, expected to reach USD 322.4 billion by 2028, growing at a CAGR of 8.6%.
- Construction Equipment Market: USD 167.6 billion in 2023, expected to reach USD 224.2 billion by 2028, growing at a CAGR of 7.1%.
- Forestry Machinery Market: USD 11.5 billion in 2023, expected to reach USD 15.2 billion by 2028, growing at a CAGR of 6.2%.
- Valuation: Absolute valuation (FCFF + TV) results in a target price of $434.80, while relative valuation (trading multiples) results in $357.17. The company is considered undervalued due to its growth opportunities and risk profile.
- Recommendation: BUY, with a long-term perspective.