Summary:
- Deere & Co (DE, Financial) has seen a remarkable 255% stock increase since April 2020, despite financial challenges due to significant debt.
- Analyst consensus points to a 9.09% upside for DE with potential upside based on price targets.
- GuruFocus estimates suggest a considerable downside risk, estimating DE's fair value at a 32.23% discount from current prices.
Impressive Stock Performance Amidst Financial Concerns
Deere & Co (DE) has demonstrated strong stock performance, boosting investor confidence with an impressive 255% rise since April 2020. Despite this robust growth, the company faces financial challenges. Its significant debt load of $64.38 billion greatly overshadows its cash reserves of $7.82 billion. This imbalance is further underscored by a 6× net-debt-to-EBITDA ratio and a free cash flow margin of 15.7%, painting a picture of financial hurdles in an environment of high valuation.
Wall Street's Perspective: Price Targets and Recommendations
The analysis from 19 Wall Street analysts provides a range of price targets for Deere. The average target price is pegged at $493.54, with the highest estimate reaching $583.00 and the lowest at $400.00. This average target indicates a potential upside of 9.09% from the current trading price of $452.42. Investors seeking more detailed estimates can explore the Deere & Co Forecast page.
Consensus from 24 brokerage firms places Deere & Co's (DE, Financial) average recommendation at 2.5, maintaining its "Outperform" status. The rating scale, ranging from 1 (Strong Buy) to 5 (Sell), reflects optimism about Deere's future performance.
Value Assessment According to GuruFocus
According to GuruFocus estimates, the GF Value for Deere & Co (DE, Financial) over the next year is projected at $306.61. This suggests a potential downside of 32.23% from its current trading price of $452.42. The GF Value is a proprietary GuruFocus measure of a stock's fair value, calculated using historical trading multiples, past business growth, and future business performance projections. More in-depth data on DE's valuation can be found on the Deere & Co Summary page.
