The broader trend of top names taking a step back from the diversity, equity, and inclusion (DEI) approach continues. In the latest, John Deere (DE) is scaling back its DEI initiatives following backlash from a conservative activist.
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Deere Steps Back from DEI
The company is opting for customer trust and a quality-based workplace instead of its DEI initiatives. The new approach involves John Deere no longer participating in or supporting external social or cultural awareness parades or events. In fact, John Deere plans to audit its training materials and policies to “ensure the absence of socially motivated messages.”
The Bigger Picture
Interestingly, John Deere’s new approach comes after filmmaker Robby Starbuck released a report highlighting multiple woke policies at the company. But John Deere is not the only farm equipment company stepping away from DEI. Recently, Tractor Supply announced a move away from DEI after facing conservative backlash.
This shift in DEI policies is part of a broader trend. Other top names, such as Google (GOOG) and Meta (META), have also dialed down their DEI efforts. Earlier this month, Microsoft (MSFT) laid off its DEI team, citing “changing business needs.”
Meanwhile, Deere’s share price has dropped by nearly 10% over the past year amid challenging macroeconomic conditions and elevated interest rates. Traders are largely anticipating a rate cut over the coming months, and such a scenario could boost Deere’s fortunes.
Is DE a Buy, Sell, or Hold?
For now, though, the Street is cautiously optimistic about Deere with a Moderate Buy consensus rating. The average DE price target of $413.33 points to a modest 7.3% potential upside in the stock.
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