As a global manufacturing company, Deere is impacted by trends in trade policies, exchange rates, and commodity prices. However, Deere management understands, and does a good job of managing, the factors it can control (such as pricing and costs). Prior to the pandemic, results had been on an upswing, driven by a rebound in global demand, an accretive acquisition, and management’s focus on costs. Deere management took further steps to reduce costs during the pandemic, and earnings are now back in growth mode. A new CEO and CFO have been appointed in recent months, and both are from Deere’s innovative Precision Ag group. We see continued solid earnings power in the quarters ahead, as new management takes steps to boost margins and the company’s customers carry out the essential work of promoting food security. In our view, the shares offer value. Our target price is $420.