Deere downgraded to Hold at Jefferies on valuation

Jefferies analyst Stephen Volkmann downgraded Deere (DE) to Hold from Buy with an unchanged $510 price target as part of a broader research note previewing 2025 for the Machinery and Industrial sector. Approaching 2025, the landscape has changed as the markets have turned more bullish on industrial trends and with valuations near the high end of historical highs, the firm is forced to be “increasingly selective”, the analyst tells investors in a research note. Deere shares are now trading at a P/E of 24-times expected 2025 earnings estimate of $19/shr, consistent with the high end of historical trough valuations, and the ag sector may be most at risk from a ramp up of tariff conflicts with China, Jefferies states. The firm adds however that longer-term, it remains positive on the stock given stable to growing global crop demand, increasing production volatility and the trend toward precision ag solutions.