AGCO - John Deere At Fair Value Ahead Of Q2 Earnings Report

• Deere is a premium brand in the farming and machinery sector that has become even more strategic after the pandemic and the war in Ukraine.
• Though order books are full and revenues are up YoY, higher production costs are impacting on margins, lowering them below Deere's standard.
• The stock price has already seen a major surge and is pricing in a lot of good news which may not come at the expected speed.
• I rate Deere as a hold, as it now trades around its fair value ahead of the Q2 earnings report.

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