Street View: Deere's double-digit fall in EOP offers insight into 2025 demand

Median Technologies SA

16/08/2024 12:36

** Deere & Co's  DE.N  Q3 profit beat estimates on Thursday
as stronger pricing and cost control measures protected margins
from sluggish demand for its farm equipment
    ** Median PT of 24 brokerages covering stock is $420 - LSEG
data
    
    "INVENTORY IS CAUSE FOR CONCERN"
    ** Daiwa Capital Markets ("outperform", PT: $425) says DE's
double-digit decline in Early Order Program (EOP) for sprayers
and planters could suggest continued weakness in first half of
FY25
    ** Jefferies ("buy", PT: $495) says higher penetration of
precision products should improve DE's margin into 2025
    ** DE is taking more aggressive stance in inventory
reduction earlier in cycle, which could result in shorter
downturn - Jefferies 
    ** J.P.Morgan ("neutral", PT: $360) sees retail demand
likely being down another 10%-15% next year; says DE should be
able to produce to demand
    ** Inventory is cause for concern - J.P.Morgan 
    ** Bernstein ("market-perform", PT: $342) says EOP program
is tracking down double-digits, which offers insight into demand
in 2025

 (Reporting by Reshma Rockie George in Bengaluru)
 ((Reshma.George@thomsonreuters.com))