Truist Securities is maintaining its Buy rating on Deere & Company (NYSE:DE) with a $619 price target, highlighting the company’s expanding footprint in Brazil as a key driver of long-term growth and earnings resilience.
Over the past two decades, Deere has methodically built out its presence in Brazil, investing in localized manufacturing, product development, and a robust dealer network. These efforts have helped the company capture leading market share in the country while achieving profitability on par with its North American operations.
Brazil’s agricultural sector is increasingly shifting toward large-scale commercial farms, creating fertile ground for Deere’s precision agriculture technologies. The company is seeing a direct link between adoption of these tools and market share gains, reinforcing its strategy to accelerate top-line growth in the region.
While Deere continues to target a 20% through-cycle margin, its performance already exceeds that benchmark thanks to high-margin parts sales, a growing financial services arm, and geographic diversification. The company’s ability to sustain industry-leading margins and deliver consistent earnings through various market cycles positions it as a standout in the industrial sector.
Truist believes Deere’s blend of organic growth, precision ag leadership, and global earnings strength makes a compelling case for continued upside, even in a challenging macro environment.