DE Stock Rises Overnight: Why One Analyst Sees 58% Upside In Tractor Maker

• Oppenheimer raised Deere’s price target to $685, citing stronger 2027 equipment bookings and rising corn prices.
• Bank of America raised Deere’s price target to $667, while Citi lifted its target to $650, citing strong Q3 results and potential for an agricultural recovery. 
• The UAW rejected Deere’s proposed two-year contract extension, setting up contentious 2027 negotiations. 

Deere & Co. (DE) stock rose overnight after analysts raised their price targets following better-than-expected Q3 results and signs of stronger demand. Oppenheimer, Bank of America and Citi see more upside if the farm equipment market starts to recover. 

Oppenheimer Sees Stronger Farm Demand To Boost Deere

Oppenheimer increased its price target on Deere to $685 from $680 and maintained an ‘Outperform’ rating. The new price target implies nearly a 58% upside to the stock’s last closing price. The firm pointed to stronger-than-anticipated early bookings for Deere’s 2027 seasonal equipment. 

Rising corn prices also added to the optimism, with the crop trading above $5 per bushel for the first time in roughly a year and a half. Oppenheimer said the agricultural market has not fully recovered, but improving conditions in North America could mark an important turning point.

JPMorgan also raised its target, moving it to $585 from $570 while retaining a ‘Neutral’ rating. The firm said Deere’s Q3 performance moderately exceeded expectations, although management’s Q4 earnings outlook fell about 10% short of the consensus estimate.

Deere stock edged 0.2% higher overnight, ahead of Monday. The stock is also on track for a monthly gain. 

BofA Sees Deere Nearing An Earnings Trough 

Bank of America raised its price target on DE sharply to $667 from $607.50 and kept a ‘Neutral’ rating. The firm argued that Deere’s Q3 performance and higher full-year net income forecast point toward a potential earnings trough, creating room for gains if farm-sector conditions improve. 

However, softer international markets, pricing challenges, and cautious farmer spending could limit the pace of any rebound, the firm cautioned.

Citi analyst Kyle Menges lifted the firm’s price target to $650 from $610 and maintained a ‘Neutral’ rating. Deere posted stronger-than-expected Q3 results, with EPS of $5.10 and agricultural equipment sales of about $7.4 billion, beating estimates of $4.69 EPS and $7.3 billion in sales, according to Fiscal Ai data.

The company raised its fiscal 2026 net income outlook to $4.75 billion - $5 billion, up from its previous $4.5 billion - $5 billion range. CEO John May said Deere expects 2026 to represent the bottom of the current agricultural equipment cycle, citing improving order trends, used-equipment inventories and adoption of newer technologies. 

Union Raises Job Security Concerns Ahead Of 2027 Talks 

According to a Wall Street Journal report, UAW members rejected Deere’s plan to extend their current contract for two more years, raising the possibility of tough negotiations when the deal expires in 2027. 

Deere had offered two annual 4% pay raises and $3,000 bonuses, while keeping existing pension, healthcare, and other benefits unchanged. UAW President Shawn Fain criticized the proposal for not addressing outsourcing or plans to recall about 1,600 laid-off workers. 

DE Stock: Retail Stance 

On Stocktwits, retail sentiment around the stock remained in ‘extremely bullish’ territory. 

DE stock has gained 39% year-to-date. 

Also See: WMT Vs TGT: Walmart Has The Scale, Target Has Turnaround Momentum — Which Retail Stock Looks Better Now?

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