Morgan Stanley expects a “neutral to modestly positive stock reaction” to Deere’s (DE) fiscal Q4 EPS beat and FY25 guidance that missed consensus but the firm thinks “came in roughly in-line versus our sense of buyside expectations.” Deere guided to $5B-$5.5B in net income, which the firm estimates implies a rough EPS guidance range of $18-$20, or roughly 12% below consensus at the midpoint. However, it thinks this guidance was in-line to modestly better than feared by the buyside, where it believes expectations were already set for “something in the high-teens, with fears that mid-teens was not out of the realm of possibility.” The firm has an Overweight rating and $401 price target on Deere shares.
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