DA Davidson raised its price target for Deere & Co. to $760 from $685 on Monday, maintaining a buy rating as the agricultural equipment maker reported third-quarter fiscal 2026 earnings that exceeded expectations.
The company posted adjusted earnings per share of $5.10, beating the consensus estimate by $0.41, and included $110 million in International Emergency Economic Powers Act (IEEPA) tariff refunds, contributing approximately $0.29 to EPS. Deere reiterated its view that 2026 would represent a trough year for its business, though early order programs for the next year are showing signs of improvement.
JPMorgan adjusted its price target for Deere to $585 from $570, keeping a neutral rating. The bank noted that Deere's fourth-quarter EPS guidance fell about 10% below consensus estimates. UBS lowered its target to $728 from $732, while Truist Securities reduced its target to $804 from $812, both maintaining buy ratings.
Deere's shares trade near a 52-week high of $674.19, with a price-to-earnings ratio of 36.5. Agricultural equipment margins came in above projections, and the company raised its full-year guidance at the midpoint. DA Davidson highlighted positive early order trends as evidence of improving investor sentiment, while also noting potential tailwinds from global crop trends and expected increases in tractor volume.
Labor relations remain a point of focus, as members of the United Auto Workers (UAW) rejected a two-year contract extension proposal. The rejected offer included wage increases of 4% and a $3,000 bonus for early acceptance. Negotiations for a new labor agreement are scheduled to resume in 2027.
