03:12 PM EST, 11/18/2024 (MT Newswires) -- Deere's (DE) fiscal Q4 is likely to be its weakest in terms of pricing as the company leaned into incentives to help move dealers' excess used inventory, Oppenheimer said in a note emailed Monday.

While Deere's efforts would likely place it in the "best inventory position relative to peers," the company is still likely to face "pockets of continued underproduction" in calendar 2025, Oppenheimer said.

Deere will release its fiscal Q4 results on Thursday.

Meanwhile, Deere is also expected to set conservative initial estimates for fiscal 2025 amid limited order coverage and ongoing destocking, according to the firm.

Oppenheimer said the company's stock price could fall in the low-$300 range if Deere's guidance suggests fiscal 2025 earnings of $18 per share. The firm said it would be "constructive" if the guidance implied a $20 per share midpoint instead.

"While we are not giving an 'all clear' on the cycle, we do see support for [Deere] to inflect to positive earnings growth in FY2025 as destocking headwinds abate," Oppenheimer wrote.

Oppenheimer has an outperform rating on Deere's stock.

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