US stock futures steady with China trade talks, Q3 earnings in focus
Investing.com - UBS upgraded Deere (NYSE:DE) stock rating from Neutral to Buy while adjusting its price target to $535.00 from $545.00. The prominent machinery manufacturer, currently trading at $457.16, has demonstrated strong financial resilience with a market capitalization of $123.6 billion. According to InvestingPro data, Deere has maintained dividend payments for an impressive 55 consecutive years.
The investment bank cited expectations that fiscal 2026 would mark the final year of Deere’s earnings downturn before a recovery begins in fiscal 2027.
UBS believes agricultural fundamentals and sentiment are approaching bottom, creating a favorable entry point despite their earnings per share estimate sitting approximately 10% below consensus for fiscal 2026.
The firm projects limited downside risk for Deere shares, noting the stock is currently pricing in approximately $18 of trough earnings per share, compared to UBS’s estimate of $17.90 for fiscal 2026.
UBS forecasts approximately 30% earnings per share growth for Deere in fiscal 2027, suggesting a positive inflection in the business cycle should begin to be reflected in the stock price over the next year.
In other recent news, Deere & Company has been active with several financial and strategic developments. Deere Funding Canada Corporation, a subsidiary of Deere & Company, announced the issuance of $500 million in notes due in 2030, guaranteed by Deere & Company. Interest on these notes will be paid semi-annually starting in 2026. In the realm of market analysis, Truist Securities adjusted its price target for Deere to $609, maintaining a Buy rating, citing that major markets are at a cyclical trough. Conversely, DA Davidson lowered its price target to $580, also keeping a Buy rating, influenced by a downturn in global agricultural equipment markets. Truist Securities further reduced its target to $602 due to a $200 million tariff impact, though Deere’s quarterly results exceeded expectations by 4%. Oppenheimer raised its price target to $566, maintaining an Outperform rating, noting positive growth indicators in European and Latin American markets despite a recent stock selloff. These developments reflect a complex landscape for Deere & Company, with mixed signals from market analysts.
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