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Metadata API - Error: Cannot find folder:

I'm trying to deploy a new Report to a target org with a new folder, and keep getting the following error in my deployment:
All Component Failures:
1.  reports/<report_folder>/<report_name>.report -- Error: Cannot find folder:<report_folder>
I'm hoping this doesn't involve manual creation of the folder in the target org.

I have the report folder in my metadata in reports/<report_name>-meta.xml, and looks like:
<?xml version="1.0" encoding="UTF-8"?>
<ReportFolder xmlns="http://soap.sforce.com/2006/04/metadata">
    <name>report name</name>

Is there something I'm missing?