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Deere (DE) to Buy Majority Stake in Kreisel, Meet Battery Demand
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Deere & Company (DE - Free Report) entered into an agreement to acquire majority stake in Kreisel Electric, Inc. to meet the increasing demand for batteries for off-highway vehicles.
Kreisel is a Rainbach, Austria-based battery technology provider that develops immersion-cooled high-density, high-durability electric battery modules and packs for high-performance and off-highway applications. The company offers its differentiated battery technology and battery-buffered charging infrastructure for global customer across various end markets that include commercial and off-highway vehicles, marine, e-motorsports and other high-performance applications.
Deere will benefit from Kreisel’s above-mentioned battery features as its turf equipment, small and compact utility tractors, compact construction as well as some road-building equipment uses batteries as a primary source of power. The latest deal aligns well with the company’s continuous focus on development and investment in technologies to innovate, deliver value to customers while progressing toward zero-emissions propulsion systems. In fact, Kreisel’s electric battery technology is aligned with Deere’s sustainability goals of using new technologies that lower the environmental impact of new products.
Kreisel will retain its employees, brand name and trademark, while continuing to operate from its current location to serve customers. The deal is expected to close within two months.
Deere is well poised for growth in the long term, backed by steady investments in new products and geographies. Focus on launching innovative products equipped with advanced technologies and features as well as making investments in precision agriculture provides a competitive edge. The company recently launched ExactRate planter-applied fertilizer systems and AutoPath. Deere intends to revolutionize agriculture with technology and make farming automated, easy to use and more precise across the production process. Farmers’ growing reliance on advanced technology to run their complex operations efficiently will continue to fuel Deere’s revenues.
Deere’s top line will benefit from increased commodity prices that will drive farm income, encouraging farmers to boost spending on new agricultural equipment and replace their aging fleets. Deere projects fiscal 2022 net income in the band of $6.5-$7 billion, suggesting an increase from $5.96 billion in fiscal 2021. Positive farm fundamentals, including favorable crop prices, economic growth and increased infrastructure spending in fiscal 2022, will continue to drive the company’s farm and construction equipment demand.
Price Performance
Deere’s shares have gained 34.9% in the past year compared with the industry’s growth of 30.7%.
SiteOne Landscape has an estimated earnings growth rate of around 77.2% for the current year. In the past 30 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 14%.
In a year’s time, the company’s shares have increased 68%. SiteOne Landscape has a trailing four-quarter earnings surprise of 130.9%, on average.
A. O. Smith has an expected earnings growth rate of around 35% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised upward by 1% in the past 30 days.
A. O. Smith’s shares have surged 44% in a year’s time. The company has a trailing four-quarter earnings surprise of 16.8%, on average.
ScanSource has a projected earnings growth rate of around 19% for 2021. The Zacks Consensus Estimate for current-year earnings has been revised upward by 1% in the past 30 days.
The company’s shares have appreciated 23% in the past year. ScanSource has a trailing four-quarter earnings surprise of 34.6%, on average.
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Deere (DE) to Buy Majority Stake in Kreisel, Meet Battery Demand
Deere & Company (DE - Free Report) entered into an agreement to acquire majority stake in Kreisel Electric, Inc. to meet the increasing demand for batteries for off-highway vehicles.
Kreisel is a Rainbach, Austria-based battery technology provider that develops immersion-cooled high-density, high-durability electric battery modules and packs for high-performance and off-highway applications. The company offers its differentiated battery technology and battery-buffered charging infrastructure for global customer across various end markets that include commercial and off-highway vehicles, marine, e-motorsports and other high-performance applications.
Deere will benefit from Kreisel’s above-mentioned battery features as its turf equipment, small and compact utility tractors, compact construction as well as some road-building equipment uses batteries as a primary source of power. The latest deal aligns well with the company’s continuous focus on development and investment in technologies to innovate, deliver value to customers while progressing toward zero-emissions propulsion systems. In fact, Kreisel’s electric battery technology is aligned with Deere’s sustainability goals of using new technologies that lower the environmental impact of new products.
Kreisel will retain its employees, brand name and trademark, while continuing to operate from its current location to serve customers. The deal is expected to close within two months.
Deere is well poised for growth in the long term, backed by steady investments in new products and geographies. Focus on launching innovative products equipped with advanced technologies and features as well as making investments in precision agriculture provides a competitive edge. The company recently launched ExactRate planter-applied fertilizer systems and AutoPath. Deere intends to revolutionize agriculture with technology and make farming automated, easy to use and more precise across the production process. Farmers’ growing reliance on advanced technology to run their complex operations efficiently will continue to fuel Deere’s revenues.
Deere’s top line will benefit from increased commodity prices that will drive farm income, encouraging farmers to boost spending on new agricultural equipment and replace their aging fleets. Deere projects fiscal 2022 net income in the band of $6.5-$7 billion, suggesting an increase from $5.96 billion in fiscal 2021. Positive farm fundamentals, including favorable crop prices, economic growth and increased infrastructure spending in fiscal 2022, will continue to drive the company’s farm and construction equipment demand.
Price Performance
Deere’s shares have gained 34.9% in the past year compared with the industry’s growth of 30.7%.
Zacks Rank and Stocks to Consider
Deere currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Industrial Products sector include SiteOne Landscape Supply (SITE - Free Report) , A. O. Smith Corporation (AOS - Free Report) and ScanSource, Inc. (SCSC - Free Report) . While SITE flaunts a Zacks Rank #1 (Strong Buy), AOS and SCSC carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SiteOne Landscape has an estimated earnings growth rate of around 77.2% for the current year. In the past 30 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 14%.
In a year’s time, the company’s shares have increased 68%. SiteOne Landscape has a trailing four-quarter earnings surprise of 130.9%, on average.
A. O. Smith has an expected earnings growth rate of around 35% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised upward by 1% in the past 30 days.
A. O. Smith’s shares have surged 44% in a year’s time. The company has a trailing four-quarter earnings surprise of 16.8%, on average.
ScanSource has a projected earnings growth rate of around 19% for 2021. The Zacks Consensus Estimate for current-year earnings has been revised upward by 1% in the past 30 days.
The company’s shares have appreciated 23% in the past year. ScanSource has a trailing four-quarter earnings surprise of 34.6%, on average.