Key insights
- Bernstein raised Deere's price target, citing signs of a potential agricultural sector bottom in 2026. Despite current headwinds and high estimates, the firm sees a clearing event for DE stock as farmer profits recover and channel destocking progresses. UBS also reiterated a Buy rating, highlighting positive trade developments with China and an expected earnings recovery from fiscal 2027. This suggests a potential shift in sentiment for the agricultural sector and its bellwether.
Investing.com - Bernstein SocGen Group raised its price target on Deere (NYSE:DE) to $521.00 from $487.00 on Thursday, while maintaining a Market Perform rating on the agricultural equipment manufacturer. This target sits between the current analyst range of $440 to $724, according to InvestingPro data, with Deere shares currently trading at around $480.
The research firm cited several indicators suggesting that 2026 could mark the cyclical bottom for the large agriculture sector, potentially creating a clearing event for Deere stock, which has underperformed year-to-date. Despite this underperformance, Deere has maintained dividend payments for 55 consecutive years and has raised its dividend for 4 consecutive years, as highlighted in InvestingPro Tips.
Bernstein noted that despite current Street estimates being approximately 14% too high, there are growing signs that next year will represent a cyclical trough, including agricultural demand tracking toward a 40-year low. This aligns with InvestingPro data showing analysts anticipate a 26% sales decline in the current year, with 7 analysts recently revising earnings downward.
The firm also highlighted that land-owning farmers are expected to see a profit recovery next year, while progress in channel destocking removes concerns about discount-driven margin compression.
With 2026 estimates likely to be de-risked, Bernstein suggested the market would be more likely to assign a trough multiple to Deere shares, which could result in approximately 10% upside potential.
In other recent news, Deere & Company has been active with several developments. UBS reiterated its Buy rating on Deere stock, maintaining a price target of $535, highlighting positive trade developments for U.S. farmers, including a significant soybean purchase agreement with China. Additionally, UBS upgraded Deere’s stock rating from Neutral to Buy, pointing to an expected earnings recovery beginning in fiscal 2027. RBC Capital also initiated coverage on Deere with an Outperform rating and a $542 price target, noting the company’s leadership in technology-enabled agriculture. In financial activities, Deere Funding Canada Corporation, a subsidiary of Deere, issued $500 million in 4.15% notes due in 2030. These notes, guaranteed by Deere & Company, will have interest payments starting in April 2026. These recent developments reflect ongoing strategic and financial maneuvers by Deere & Company.
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