Forecast Of The Day: Deere’s Construction and Forestry Equipment Revenue

-2.23%
Downside
411
Market
402
Trefis
DE: Deere logo
DE
Deere

What?

Deere’s (NYSE:DE) Construction and Forestry Equipment Revenue declined from around $11.5 billion in 2019 to about $9 billion in 2020. Trefis expects the number to rise to about $11.6 billion in 2021 and $13.7 billion in 2022.

Why?

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While the declines in 2020 were due to the Covid-19 lockdowns, we expect future growth to be driven by the re-opening of the economy, higher infrastructure spending in the U.S., and the company’s expansion into international markets.

So What?

We don’t think the projected growth is priced into Deere stock just yet. We value DE at about $434 per share, a premium of about 15% over the current market price.

See Our Complete Analysis For Deere

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