We Believe Precision Ag Will Be an Incremental Value Driver for Ag Manufacturers This Decade

The attractive precision agriculture opportunity has led us to raise our fair value estimate for Deere to $332 per share from $297. We also raised our fair value estimate for CNH to $15.60 per share from $14.10 and for Agco to $133 per share from $127. These players possess automation technology for one or more farming production steps, which we think increases the likelihood of leveraging the technology across the farming production cycle in the next decade.