DA Davidson increased its price target for Deere & Co. to $760 from $685, maintaining a Buy rating as the machinery leader reported third-quarter fiscal 2026 earnings that surpassed consensus estimates.
The upgrade follows Deere's reported adjusted earnings per share of $5.10, exceeding analyst expectations by 8.7% and including $110 million in IEEPA tariff refunds, which added approximately $0.29 to EPS. The company reiterated its view that fiscal 2026 will represent a trough year for its business, though guidance at the midpoint was raised.
Agricultural equipment margins outpaced forecasts, and early-order programs for next year are showing positive momentum, signaling improved investor sentiment. Deere's stock, which reached a 52-week high of $674.19, trades at a P/E ratio of 36.5.
Other analysts adjusted their targets following the earnings release. JPMorgan raised its target to $585 from $570 but noted fourth-quarter EPS guidance was about 10% below consensus. UBS lowered its target to $728 from $732, while Truist Securities reduced its target to $804 from $812. All firms maintained their respective ratings: DA Davidson (Buy), JPMorgan (Neutral), UBS (Buy), and Truist (Buy).
Labor relations remain a point of contention. The United Auto Workers rejected a contract extension offer that included 4% wage increases and $3,000 bonuses for early acceptance, with a new agreement not expected until 2027.
