Baird Upgrades Deere (DE) to Outperform on Hopes of Recovery

On August 31, investment firm Baird upgraded Deere & Company (NYSE:DE) from Neutral to Outperform, raising its price target from $640 to $800. Analysts at Baird see potential for the company as it has a significant exposure to North American row-crop equipment demand. The firm believes Deere & Company (NYSE:DE) could be among the first agricultural equipment companies to benefit from a recovery in the agricultural sector.

Early order programs, which showed mid-single-digit percentage growth for planters and sprayers compared to last year, suggest a possible increase in orders when completion occurs, indicating early signs of recovery in production and precision agriculture. Baird also anticipates that Deere & Company's (NYSE:DE) earnings power could reach $25 per share in 2027 and the mid-$30s per share in 2028 as the North American agricultural cycle recovers.

However, concerns remain with challenging overall market conditions, including farm income under pressure, uncertainty over input costs and crop demand, and higher tariffs. Hedge fund interest in Deere & Company (NYSE:DE) has decreased recently, with 59 funds holding positions in Q2 2026, down from 62 funds in Q1. Despite these risks, Baird remains cautiously optimistic about Deere & Company (NYSE:DE)'s potential upside.