DA Davidson has raised its price target for Deere & Co. (NYSE: DE) to $775 from $580 and retained a Buy recommendation, citing an uptick in orders across the equipment maker's operating segments after the company reported first-quarter fiscal 2026 results.
In its research note, DA Davidson highlighted signs of improvement in Large-Ag orders, and said that Construction and Small Ag/Turf are offering firmer support to the business. The firm pointed to a particularly large expansion in the Construction order book, which it said has increased by 50% and could support mid-teens operating margins going forward.
While DA Davidson acknowledged that a recovery in the broader agricultural cycle has not yet materialized, the analyst expressed expectations that Deere's stock could climb further on favorable newsflow and the prospect of incremental margins exceeding 40%. In its commentary, the firm described Deere as a "Best-of-Breed Bison stalwart."
Deere itself reported first-quarter results that outpaced consensus by 20%, prompting management to raise fiscal 2026 net income guidance by roughly $375 million to a range of $4.5 billion to $5.0 billion. That adjusted guidance translates to earnings per share of about $17.50 and was attributed to higher-than-expected shipments in the Small Ag & Turf and Construction & Forestry segments.
Other sell-side moves followed the company update. UBS raised its price target for Deere to $775, citing the quarterly performance and positive bookings trends and saying the firm may be approaching the bottom of its earnings downcycle. Truist Securities also lifted its target, taking it to $793 while maintaining a Buy rating on Deere, backing that action with the company's strong quarterly results.
Morgan Stanley revised its estimates as well, boosting its fiscal second-quarter 2026 earnings-per-share projection for Deere to $5.72 and increasing its full-year EPS estimate to $17.06. The firm raised its price target to $730 and kept an Overweight rating.
Not all analysts moved in the same direction. Jefferies downgraded Deere to Underperform from Hold and set a price target of $550, citing valuation concerns and noting that the stock's price-to-earnings ratio is well above its prior peak average. BMO Capital raised its price target to $500 but kept a Market Perform rating, pointing to improving sentiment in large agriculture.
Taken together, these revisions reflect a mix of optimism about improving orders, shipments and margins and more cautious views focused on valuation. The market response and further updates to orders and margin metrics will likely drive subsequent analyst positioning.