DE – Market expectations are for record-high Uniform ROA, and management is confident about sales growth, roadbuilding, and R&D spend

• Deere & Company (DE:USA) currently trades above historical averages relative to UAFRS-based (Uniform) earnings, with a 24.0x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, and management is confident about their segment sales growth, roadbuilding potential, and production & precision ag R&D spend

• Specifically, management is confident the production & precision ag and the small ag & turf segments saw 20% sales growth, the roadbuilding business will see 20% sales growth in 2022, and the production & precision ag segment will see higher R&D spend compared to the rest of the business