Baird Upgrades Deere (DE) Rating to Outperform Amid Recovery Hopes
On August 31, Baird upgraded its rating on Deere & Company (NYSE: DE) from Neutral to Outperform and raised the price target from $640 to $800. The firm cited strong exposure to North American row-crop equipment demand as a key factor in its positive outlook. Baird noted that early order programs for planters and sprayers showed mid-single-digit growth compared with last year, suggesting potential recovery in production and precision agriculture by 2027 and beyond. The firm anticipates Deere's earnings power could reach $25 per share in 2027 and rise to the mid-$30s in 2028 as demand recovers. However, challenges remain for Deere due to weak farm profitability, elevated input costs, and uncertainty around trade flows. The company expects a decline of 15%–20% in large agricultural equipment sales year-over-year and faces rising tariff expenses that could reach $1 billion next year.
Tickers: $DE
Topics: agricultural equipment Deere earnings outlook stock upgrade