Baird upgrades Deere stock rating on North America crop outlook

Deere & Co. (NYSE:DE), an agricultural equipment manufacturer, has seen its stock rating upgraded to "Outperform" by Baird, with the price target increased to $800 from $640. The firm attributed this upgrade to Deere's significant exposure to North American row crop equipment demand, positioning the company to benefit when investors anticipate a fundamental shift in the agricultural sector.

Baird highlighted early order programs for planters and sprayers, showing mid-single-digit percentage increases compared to last year's completed program, indicating a potential for higher completion. If the company's assessment of corn and soybean fundamentals holds true, early order programs likely understate the true demand potential for production and precision agriculture in 2027 and 2028, pointing towards substantial growth from Deere's current earnings of $17.99 per share.

The investment firm sees Deere well-positioned to capitalize on a trough in the North American large agriculture base, given its outsized exposure to the region and strong execution. For a deeper analysis, Deere is covered in InvestingPro’s Pro Research Reports, among 1,400+ stocks.

Other notable news includes Deere & Co.'s third-quarter earnings per share of $5.10, surpassing estimates by $0.41, driven by $110 million in IEEPA tariff refunds and a higher effective tax rate. DA Davidson raised its price target to $760, while Truist Securities adjusted to $804, both maintaining a Buy rating. JPMorgan increased its price target to $585 from $570, despite lower-than-expected fourth-quarter earnings guidance.

The United Auto Workers rejected Deere’s proposal for a new contract, moving the company toward negotiations in 2027. These developments collectively shape Deere's financial and operational outlook.