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Deere initiated with a Neutral at Citi

Deere initiated with a Neutral at Citi

Citi initiated coverage of Deere with a Neutral rating and $395 price target. The firm’s outlook for machinery “leans neutral-to-positive,” reflective of its even split between Buy and Neutral ratings. Citi sees the most upside for construction-levered names, driven by its “better-than-feared” outlook for North American non-residential construction. The analyst also sees the most downside risk to North America agriculture estimates. The firm’s analysis of large ag replacement demand, and an observed pickup in used inventories, suggest more potential downside than upside risk to Street estimates for 2025.

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