Group 1 - Khaveen Investments is a global Investment Advisory Firm serving high-net-worth individuals, corporations, associations, and institutions [1] - The firm offers comprehensive services including market and security research, business valuation, and wealth management [1] - The flagship Macroquantamental Hedge Fund maintains a diversified portfolio across various asset classes, geographies, sectors, and industries [1] Group 2 - The investment approach integrates top-down and bottom-up analysis, blending global macro, fundamental, and quantitative strategies [1] - Core expertise lies in disruptive technologies such as Artificial Intelligence, Cloud Computing, 5G, Autonomous and Electric Vehicles, FinTech, Augmented and Virtual Reality, and the Internet of Things (IoT) [1]

Core Insights - Deere & Company is facing ongoing volume pressures in its equipment operations, with eight consecutive quarters of decline, particularly in the Agricultural & Turf segment [1][10] - Weak farmer sentiment, driven by low commodity prices, high input costs, and elevated interest rates, is negatively impacting demand for agricultural machinery [2] - The company anticipates a challenging industry outlook for fiscal 2025, with significant declines expected in both large and small agricultural equipment markets [3] Equipment Operations - The Agricultural & Turf segment is projected to see a 16.4% decline in volumes, with the Production & Precision AG segment expected to drop 17.6% and the Small AG & Turf segment by 14.2% [5] - The Construction & Forestry segment is also expected to decline by 12.4% in volumes for 2025 [5] - Overall, Equipment Operations' volumes are anticipated to decline by 15.3% in 2025 [5] Market Conditions - The large agriculture equipment market in the U.S. and Canada is expected to decline by 30%, while the small agriculture and turf equipment market is projected to decline by 10-15% [3] - Construction equipment demand is under pressure, with a forecasted 10% drop in U.S. and Canadian construction equipment sales [4] - Trade uncertainty and high interest rates are affecting order activity for both construction and compact construction equipment [4][10] Competitor Analysis - Industry peers such as AGCO Corporation and CNH Industrial are also experiencing declines, with AGCO expecting a 12.1% decline in organic growth for 2025 [6][8] - AGCO anticipates a 25-30% drop in sales volumes of large agricultural equipment in North America [7] - CNH Industrial has reported eight consecutive quarters of volume declines in the Agriculture segment [8] Financial Performance - Deere's shares have gained 24.4% this year, outperforming the industry average of 18.3% [9] - The Zacks Consensus Estimate for Deere's fiscal 2025 earnings indicates a year-over-year decline of 26.5%, with revenues expected to drop by 15% [12] - The earnings estimate for fiscal 2026 indicates a potential recovery with a 17% growth forecast [12]

Core Insights - Deere & Company (DE) is currently trading at a forward 12-month earnings multiple of 24.46X, which is a 7% premium to the farm equipment manufacturing industry's average of 22.85X and significantly higher than DE's five-year median of 15.83X, resulting in a Value Score of D [1] Financial Performance - DE stock has gained 20.3% year to date, outperforming the industry's growth of 18.3%, while the broader Zacks Industrial Products sector has declined by 2.2% and the S&P 500 has increased by 1.2% [3] - The company expects net income for FY25 to be between $4.75 billion and $5.5 billion, a decrease from $7.1 billion in FY24, due to weak demand across all segments [6][14] - Year-over-year declines in revenues and earnings have been observed for the past six quarters, attributed to lower shipment volumes amid weak demand, although pricing strategies have somewhat mitigated the impact [8] Market Conditions - Farmer spending has been muted due to low commodity prices, persistent inflation, and high interest rates, which are negatively impacting demand for agricultural equipment [9] - DE anticipates a decline in net sales for Production & Precision Agriculture by 15-20%, Small Agriculture & Turf by 10-15%, and Construction & Forestry by 10-15% in FY25 [13] Long-term Prospects - Despite near-term challenges, DE's focus on technology and global demand trends supports long-term growth potential, with the U.S. agricultural machinery market expected to reach $42 billion in 2025 and grow at a compound annual growth rate of 6.3% to around $57.1 billion by 2030 [16] - The company has been investing in advanced technologies and recently acquired Sentera to enhance its offerings in data-driven agricultural solutions [18] Competitive Position - DE's trailing 12-month return on equity is 24.4%, outperforming the industry's average of 19.2%, indicating effective utilization of shareholders' funds [19] - Compared to key competitors, AGCO and CNH Industrial have ROEs of 10.6% and 14.32%, respectively, while Komatsu has 13.56%, positioning DE favorably within the industry [20]

Core Insights - Deere & Company is committed to supporting Brazil's agricultural transformation, positioning itself as a key player in the country's rise as a global agricultural superpower [1] - Brazil's agricultural production is expected to increase significantly over the next decade, with soybeans projected to rise by 46%, corn by 50%, sugarcane by 20%, and cotton by 38% [1] Group 1: Market Position and Growth - Corn and soy account for 90% of Brazil's total grain production, highlighting the strategic importance of these crops for Deere [1] - Deere's tractor market share in Brazil has nearly doubled from 2009 to 2024, with significant growth in the combine (1.5 times), planter (2.5 times), and sprayer (2 times) markets [4] - The company has made substantial investments in Brazil, including eight factories, four facilities, and one R&D center, diversifying its product portfolio beyond just soybeans [3] Group 2: Technological Innovations - Expanding farming areas by utilizing degraded land and implementing double cropping practices will support agricultural growth, with Deere's precision solutions playing a crucial role [2] - Deere is addressing poor cell coverage in Brazil by developing satellite-based solutions for real-time data management, expecting its connected machines to grow from 17 in 2020 to 200 by 2030 [3] Group 3: Competitive Landscape - Other players like AGCO Corporation and CNH Industrial are also focusing on the Brazilian market, with AGCO announcing new facilities and investments to enhance its manufacturing presence [5][7] - CNH Industrial showcased innovative products at Agrishow 2025, indicating a competitive environment in agricultural machinery [6] Group 4: Financial Performance - Deere's shares have increased by 21.9% this year, outperforming the industry growth of 21% and the S&P 500's gain of 1.7% [8] - The forward 12-month price/earnings (P/E) ratio for Deere is 25.11X, compared to the industry average of 23.46X, suggesting it may not be a compelling value proposition at current levels [10] Group 5: Earnings Estimates - The Zacks Consensus Estimate for Deere's fiscal 2025 earnings indicates a year-over-year decline of 26.5%, with revenues expected to drop by 15% [11] - However, fiscal 2026 estimates show a potential recovery with earnings growth of 17% and a revenue increase of 7.3% [11]

INVESTOR DAY BRAZIL 2 0 2 5 Opportunity | Foundation | Growth WELCOME BEM-VINDOS Forward-Looking Statements This presentation and accompanying materials may include forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as "forecast," "guidance," "project," "target," "outlook," "prospects," "expect," "estimate," "will," "goal," "plan," "anticipate," "intend," "predict," "b ...

Core Viewpoint - The current economic cycle favors certain stocks outside the crowded technology sector, particularly in the industrial sector, which may offer better risk-to-reward ratios [1][2]. Group 1: Industrial Sector Insights - The industrial sector is experiencing underlying tailwinds due to trade tariff negotiations between the United States and China, which could unlock new earnings forecasts [2][3]. - Companies like CF Industries, Caterpillar, and Deere are positioned to benefit from these developments, suggesting a shift in investor focus towards these stocks [4]. Group 2: CF Industries Analysis - CF Industries has a 12-month stock price forecast of $90.21, indicating a potential downside of 2.36% from the current price of $92.40, based on 15 analyst ratings [5]. - The agricultural industry is currently facing uncertainty due to tariffs, but renewed certainty could lead to significant recovery in profits [6]. - Institutional investors have increased their position in CF Industries by 10.1%, reflecting growing confidence in the stock [6][7]. - CF Industries trades at a price-to-book (P/B) ratio of 2.1x, which is above the agricultural industry's average of 1.05x, indicating a premium valuation [8]. Group 3: Deere & Company Insights - Deere & Company has a current stock price of $514.63 with a 12-month forecast of $515.19, suggesting a slight upside of 0.11% [10]. - Analyst Jamie Cook from Truist Financial has placed a Buy rating on Deere with a price target of $619, implying a potential rally of up to 20% [11]. - Institutional capital flowing into Deere stock has reached $3.3 billion, indicating increased investor confidence [12]. - Deere trades at a P/B ratio of 6.2x, significantly higher than the industrial sector's average of 4.3x, reflecting strong market sentiment [13]. Group 4: Caterpillar Stock Outlook - Caterpillar has a current stock price of $357.85 with a 12-month forecast of $372.92, indicating a potential upside of 4.21% [14]. - The anticipated infrastructure spending bill could benefit Caterpillar as it is positioned to be a key provider of machinery and equipment [15]. - Bank of America has reiterated a Buy rating on Caterpillar with a price target of $385, suggesting a potential rally of 7.5% [18].

Summary of Deere & Company (DE) 2025 Investor Day Company Overview - **Company**: Deere & Company (John Deere) - **Event**: 2025 Investor Day - **Date**: June 10, 2025 - **Location**: Andayatuba, Brazil Industry Insights - **Agricultural Growth in Brazil**: Brazil has transformed into one of the world's largest agricultural producers, with significant advancements in grain production efficiency and innovation over the past 40 years [5][6] - **Economic Contribution**: Agribusiness accounts for 22% of Brazil's GDP, generating over $400 billion annually, and is expected to double production over the next decade [6][7] - **Sustainable Practices**: Brazil aims to restore 22 million hectares of degraded pastures, increasing planted areas by 27% while protecting conservation areas [6][7] Key Opportunities - **Market Position**: Brazil is a leading global exporter of soybeans, sugar, cotton, and corn, with agricultural exports representing nearly half of all Brazilian exports [19][20] - **Precision Agriculture**: Adoption of precision ag technologies is expected to drive productivity and efficiency, with a focus on double cropping practices [19][20] - **Ethanol Demand**: Ethanol consumption and production in Brazil are projected to increase by nearly 40% over the next decade, driven by rising blending mandates and a growing flex-fuel vehicle fleet [21][24] Company Strategy - **Smart Industrial Strategy**: John Deere's strategy focuses on integrating advanced technologies and digital solutions to enhance customer productivity and sustainability [11][12] - **Investment in R&D**: The newly opened Research and Development Center in Brazil is aimed at developing solutions tailored to local agricultural needs [12][79] - **Product Leadership**: Continuous investment in product development and manufacturing capabilities to deliver innovative solutions that meet the unique needs of Brazilian customers [78][79] Customer Landscape - **Diverse Customer Base**: John Deere serves a wide range of customers, from large family farms to extra-large agribusiness groups, each with distinct operational needs [33][34] - **Operational Challenges**: Customers face challenges such as labor scarcity, high operational complexity, and limited connectivity, which John Deere aims to address through precision solutions [39][50] Manufacturing and Dealer Network - **Manufacturing Footprint**: John Deere has established a robust manufacturing presence in Brazil, with eight factories and a comprehensive product portfolio [55][59] - **Dealer Network**: The dealer organization has expanded significantly, with over 275 locations, providing exceptional support and enhancing customer experience [72][73] Future Growth Projections - **Connected Machines**: John Deere aims to significantly increase the number of connected machines in Brazil, targeting 2.5 times the current number by 2030 [82][83] - **Engaged Acres**: The company plans to grow engaged acres in the John Deere Operations Center by 50% and highly engaged acres by 150% by 2030 [83] Conclusion - **Strategic Positioning**: John Deere is uniquely positioned to drive differentiated value and sustainable growth in Brazilian agriculture through its strong foundation, innovative solutions, and commitment to customer success [14][17]

Group 1 - The article discusses an updated "Big Picture" investment framework that the company has been looking forward to sharing [1] - The company promotes a research service that includes various investment vehicles such as REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs, highlighting positive testimonials [1] Group 2 - The article does not provide specific financial data or performance metrics related to any companies or industries [2][3]

Core Insights - John Deere employees have set a new record by volunteering over 340,000 hours in 2024, marking a 31% increase from the previous year, and have been recognized for the fourth consecutive year in The Civic 50, which honors the most community-minded companies in the U.S. [2][5] Community Contributions - The John Deere Foundation has awarded over $400 million to those in need since its inception in 1948, with $61.7 million contributed in 2024 alone to nonprofit organizations globally [5] - In 2024, the foundation's investments supported more than 115,000 youth, providing over 4 million hours of high-quality STEM education experiences facilitated by 600 John Deere employee mentors [5] Corporate Social Responsibility - The recognition from Points of Light reflects John Deere's commitment to trust-based philanthropy and unrestricted giving, showcasing the company's efforts to enhance community well-being and employee engagement [3][5] - Jennifer Sirangelo, president and CEO of Points of Light, emphasized that John Deere's initiatives serve as a model for other companies aiming to integrate social impact into their workforce [3]

Core Insights - John Deere will hold its Brazil Investor Day on June 10, 2025, at 12:00 p.m. central time, focusing on the agriculture sector's evolution and the company's regional presence [1] - The event will highlight 25 years of strategic investments and future opportunities in Brazil [1] Company Overview - Deere & Company is a global leader in providing advanced products, technology, and services for agriculture and construction sectors [3] - The company aims to meet the increasing global demand for food, fuel, shelter, and infrastructure [3]