Analysts Mixed on Deere’s Stock (DE): Street Adjusts Targets Following Earnings

Deere & Company (DE) has become the subject of varied analyst revisions following its recent earnings release, leading to a mix of optimism and caution surrounding the company's financial trajectory. Deere's stock price experienced a notable decline of 5.67% on Wednesday, landing at $469.87, as the markets digested the implications of the earnings report and subsequent analyst commentary.

The price action in DE mirrors well the market's reaction to the mixed signals emanating from various financial firms.

Oppenheimer, while maintaining an “Outperform” rating, raised its price target for Deere to $531 from $512. This adjustment underscored Deere's ability to navigate a challenging environment, achieving favorable price/cost dynamics for fiscal year 2026 despite facing $1.2 billion in tariff headwinds. The firm also highlighted Deere's proactive adoption of technology as a strategic advantage positioning it well for future cycles. However, Oppenheimer anticipates a period of model adjustments by investors leading up to the December 8 investor day, suggesting a potentially slow grind for the stock towards year-end.

Conversely, Evercore ISI adopted a more cautious stance, lowering its price target from $487 to $458, while maintaining an “In Line” rating. The firm's analysis suggested that Deere's fourth-quarter results and earnings call failed to deliver the anticipated positive momentum in agricultural equipment fundamentals. Evercore ISI expressed concern over a potentially murky near-term outlook, with projected first-quarter earnings falling below consensus estimates, potentially pressuring full-year guidance.

RBC Capital also adjusted its price target, albeit marginally, from $542 to $541, while reaffirming an “Outperform” rating. RBC acknowledged Deere's solid fourth-quarter results and the introduction of fiscal year 2026 guidance. While net income projections fell below consensus, primarily due to a $1.2 billion pre-tax tariff impact, RBC viewed Deere's progress in inventory management and the positive trajectory of its Equipment Operations favorably.

UBS offered a more confident outlook, reiterating a “Buy” rating with a $535 price target after Deere's fourth-quarter results. UBS views 2026 as a crucial year for Deere, anticipating it will represent the bottom of the agricultural cycle. Although initial fiscal year 2026 earnings guidance was slightly below UBS's model, this was attributed to a weak first quarter in North America. The firm expressed increased confidence in a recovery beginning in 2027.

Price Targets

These varied perspectives highlight the complexities surrounding Deere's current position. The company's ability to manage costs, navigate tariff challenges, and leverage technology are seen as positive indicators by some analysts. However, concerns remain regarding near-term earnings and overall market conditions. The market's reaction, evidenced by the stock's recent decline, suggests a degree of uncertainty on the street.