Key Takeaways
- Investment firm Baird elevated Deere (DE), along with AGCO, CNH Industrial, and Titan Machinery, from Hold to Buy ratings.
- The firm increased its Deere price objective to $800 from $640, representing one of just two analyst targets exceeding $800 according to FactSet data.
- The rating changes stem from strengthening agricultural fundamentals indicating a North American large-scale equipment market recovery by 2027.
- Corn futures contracts for mid-2027 have climbed above growers’ break-even thresholds, while soybean valuations show similar gains.
- The firm projects Deere’s profit potential hitting $25 per share in 2027, advancing to the mid-$30 range by 2028.
Investment analyst Mig Dobre at Baird elevated his rating on Deere (DE) to Buy from Hold this Monday, simultaneously boosting his price objective to $800 from the previous $640 mark. This positions his target as only the second forecast above $800 among Wall Street analysts tracked by FactSet.
Shares of Deere traded 0.9% higher at $635.93 during premarket hours after the announcement.
Beyond Deere, Dobre simultaneously elevated AGCO, CNH Industrial, and Titan Machinery from Hold to Buy ratings. His AGCO price objective advanced to $150 from $120, CNH to $15 from $11, and Titan to $29 from $20.
In premarket activity, AGCO climbed 1.4% to $115, CNH Industrial advanced 1.6% to $11.87, while Titan Machinery surged 4.1% to $18.59.
Agricultural Market Recovery Underpins Upgrade
Baird’s investment thesis centers on an improving agricultural equipment landscape. Dobre highlighted that corn futures for mid-2027 delivery are now priced above growers’ profitability thresholds, with soybean markets showing comparable strength.
The analyst also referenced declining crop quality conditions and tightening 2026/2027 stocks-to-use metrics as indicators of sustained commodity price strength. These factors are expected to boost per-acre profitability for farmers in 2027, which historically correlates strongly with equipment purchasing cycles.
American farmers have faced challenging market conditions recently. Benchmark corn valuations topped $8 per bushel during 2022 but opened 2026 beneath $4.50. Rising commodity prices translate directly to improved farm income, which typically flows into capital equipment investments.
Deere’s financial performance reflects this cycle. During calendar 2022, the manufacturer recorded approximately $50 billion in revenue. Projections for 2026 anticipate sales falling below $42 billion, though analysts forecast a rebound to roughly $45 billion in 2027.
Pre-Order Activity Points to Strengthening Demand
Baird highlighted encouraging signals from early ordering programs. Planters and sprayers are demonstrating mid-single-digit percentage growth compared to the prior year’s completed program cycle.
The investment firm suggested this language indicates final figures may exceed current levels, providing early confirmation of a recovery in production agriculture and precision farming technology adoption.
Should commodity market fundamentals develop as Baird anticipates, these preliminary order volumes could prove conservative relative to actual 2027 demand, potentially extending momentum through 2028.
Baird forecasts Deere’s earnings capacity approaching $25 per share during 2027 and advancing to the mid-$30 range in 2028, compared to the current $17.99 per share figure.
The company delivered Q3 earnings of $5.10 per share, exceeding consensus projections by $0.41. This performance included $110 million in IEEPA tariff reimbursements, adding approximately $0.29 to per-share results.
Truist Securities maintains an $804 price target on Deere shares. DA Davidson elevated its objective to $760 following stronger-than-anticipated agricultural equipment margin performance. JPMorgan’s current target stands at $585.
Prior to Monday’s session, Deere stock had appreciated approximately 35% year-to-date.
Among analysts tracking Deere, 58% maintain Buy ratings. For AGCO, that proportion stands at 42%, while CNH registers 59%, and three of four analysts following Titan now recommend buying the stock.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
