Deere rated Buy with strong AI and cyclical growth, posting robust sales and aiming for 15-20% growth.

Deere is rated as a Buy, considered undervalued with strong support from AI-driven innovation and cyclical market tailwinds. The company reported its fifth consecutive quarter of better-than-expected results, with significant sales growth of 16% in small agriculture & turf and 29% in construction & forestry segments year-over-year. Management expects 15-20% sales growth in key segments and plans margin expansion, while prioritizing share repurchases and debt reduction. Risks include weakness in production & precision agriculture, high leverage, and macroeconomic uncertainty, but long-term prospects are bolstered by AI advancements and potential interest rate cuts.