Deere (DE): Exploring Valuation After Launching Next-Gen Electric ZTrak Mower and Tech Upgrades

Deere is getting a lot of attention right now thanks to its new electric Z370RS ZTrak mower. The mower debuts EGO's battery technology and introduces smarter features like real-time battery monitoring and Bluetooth connectivity. This move signals Deere's ongoing interest in electrification and connected equipment.

See our latest analysis for Deere.

Deere’s recent electric mower launch fits into a year that has seen its share price swing more than its peers, reflecting both enthusiasm around innovation and shifting investor expectations. Despite these moves, Deere’s 1-year total shareholder return of 15% underlines steady long-term value even as momentum has been a bit mixed lately.

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With the stock oscillating more than its industrial peers and analysts predicting both innovation-driven growth as well as near-term earnings challenges, investors now face a key question: is Deere an undervalued opportunity in the making, or is future growth already fully priced in?

Most Popular Narrative: 13% Undervalued

With the narrative consensus placing Deere's fair value at $533, the latest closing price of $461.82 stands noticeably lower. This sizable gap is catching the eye of investors as they debate whether expectations for future growth are justified.

Rapid adoption of Deere's precision agriculture and automation solutions (e.g., JDLink Boost, Precision Essentials bundles, See & Spray tech, and new automation features) is driving higher-value product sales and increased software engagement globally. This positions Deere to benefit from shifts toward high-efficiency, technology-enabled farming, and this should lift both future revenue and net margins through higher-margin recurring software and data services.

Read the complete narrative.

Want to know what builds this bullish price gap? The narrative’s backbone isn’t just agtech headlines. It is bold margin expansion and aggressive profit growth built into the numbers, plus assumptions about Deere’s technology leadership paying off fast. Curious just how tech-driven forecasts and margin targets power this jump in fair value? Discover the details behind the claim.

Result: Fair Value of $533 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, unforeseen trade tensions and weaker North American equipment demand still present meaningful risks that could quickly shift the growth outlook for Deere.

Find out about the key risks to this Deere narrative.

Build Your Own Deere Narrative

If you see things differently or want to dig deeper into the numbers yourself, it only takes a few minutes to build your own perspective and narrative. Do it your way

A great starting point for your Deere research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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