2025-06-10-花旗集团-迪尔公司（DE）_迪尔公司（DE.N）_巴西投资者日演示要点_11页_359kb

Summary

• Citi Rating: Neutral on Deere & Company (DE.N) regarding its Brazil strategy and growth opportunities.
• Brazil Ag Outlook: Positive long-term view due to large cropland growth potential (27%), rising ethanol demand (40%), and Brazil's top 3 global producer position for key crops.
• Key Advantages (Similar to North America Strategy):
  • Strong in-region manufacturing capability.
  • Leading dealer network.
  • Precision ag technology (DJ Ops Center).
• Precision Tech Adoption: DE highlights high potential ($115 incremental profit per acre) and good initial take rates (>50%). 4,000+ units sold in first half of 2025.
• 2030 Growth Targets:
  • 2.5x increase in connected machines (target 200,000).
  • 50% increase in engaged acres (target 100 million).
  • 150% increase in highly engaged acres (target >40% of engaged acres).
• Competitive Position: DE is well-positioned to capture outsized growth due to its network and manufacturing presence.
• Valuation: Target price $525, implying a premium multiple (~28x P/E on 2025 EPS) justified by growth prospects.
• Risks: Commodity price volatility risk (affects farmer income/investment), raw material cost inflation pressure.