BMO Capital Markets on Thursday raised its price target for Deere & Co. to $500 from $460 but left its Market Perform rating unchanged. The firm said there are indications the company may have passed its most recent earnings cut.
In its report, BMO described large agriculture sentiment as still weak, but said it has recovered from recent troughs after the industry implemented disciplined underproduction. The bank added that Deere's construction and small agriculture/turf businesses are exhibiting healthier trends than the large agriculture segment.
Despite the improving demand signals, BMO flagged valuation as a material concern. The firm pointed out the stock is trading at roughly 35-40 times trough earnings per share and at around 11 times the aspirational peak EPS of $60 that Deere recently indicated could be achievable. The report noted the stock's current price-to-earnings ratio is 33.4.
Data from InvestingPro, as cited in the note, suggests Deere is overvalued relative to its Fair Value estimate, a point that is also reflected in the platform's Most Overvalued stocks analysis. An InvestingPro Tip referenced by the note describes Deere as "trading at a high earnings multiple," one of more than 15 exclusive tips the platform provides to subscribers.
BMO's new $500 target translates to about 29 times the firm's fiscal 2026 earnings estimate for Deere. The bank's commentary accompanies reference to Deere's Pro Research Report, which the platform makes available for this company and more than 1,400 other U.S. equities. Deere's common shares trade on the New York Stock Exchange under the ticker NYSE:DE.
The analyst update follows a strong set of reported results from Deere for the first quarter of fiscal 2026. The company posted earnings per share of $2.42, ahead of the $2.02 forecast. Revenue for the quarter reached $9.61 billion versus an expected $7.59 billion, a revenue beat of 26.61%. After releasing the quarter's results, Deere increased its fiscal 2026 Equipment Operations net income guidance.
Market responses from other brokerages have been markedly bullish. RBC Capital lifted its price target to $736 while maintaining an Outperform rating. Oppenheimer raised its target to $715, attributing the change in part to robust construction momentum and a favorable swing in earnings revisions. Bernstein SocGen Group also moved its target higher to $615 and kept a Market Perform stance after noting Deere's net income was 20% above Street expectations.
Collectively, these analyst moves reflect a broadly more positive tone among some firms following Deere's quarterly beat and subsequent guidance lift, even as valuation questions remain central to the debate among investors and analysts.