Deere (DE) is expected to post a beat-and-raise fiscal Q3 performance driven by segment divergence and improving North American farm fundamentals, Oppenheimer said in a note Tuesday.
The brokerage expects top- and bottom-line strength in Deere's Small Ag & Turf and Construction & Forestry divisions to offset weaker Production & Precision Ag results, creating potential to raise full-year guidance for both outperforming units.
Additionally, firming agricultural commodity prices due to weather and supply disruptions, lower fertilizer costs, and a sequential uptick in July US retail tractor orders provide key tailwinds heading into Thursday's earnings release, the note said.
Oppenheimer maintained its outperform rating on the stock.
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