In a report released today, Steven Fisher from UBS upgraded Deere to a Buy, with a price target of $535.00.
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Steven Fisher has given his Buy rating due to a combination of factors that suggest a positive outlook for Deere’s future earnings. While the current market conditions might seem challenging, Fisher anticipates that 2026 will mark the end of Deere’s earnings downturn, with a recovery expected in 2027. This optimism is based on the belief that agricultural fundamentals and market sentiment are nearing their lowest points, and a positive shift in the earnings cycle is likely to be recognized by investors over the next year.
Fisher also points to an expected upturn in large agricultural retail sales by late 2026 or early 2027, which should positively impact Deere’s performance. Additionally, the current downcycle in large tractor sales appears to be nearing its end, with sales expected to reach their lowest levels soon. This, combined with potential increases in commodity prices and a resurgence in U.S. non-residential construction, supports a favorable outlook for Deere. Consequently, Fisher has adjusted the earnings estimates for 2027 and 2028 upwards, reflecting higher anticipated sales and margins, while also lowering the 2026 estimates to account for the delayed recovery.
In another report released on October 8, Truist Financial also maintained a Buy rating on the stock with a $609.00 price target.