Deere Stock Soars on Analyst's Predicted Farming Recovery

The agricultural sector in North America is expected to see a rebound due to rising corn and soy prices, which will boost demand for large agricultural equipment. This is according to Baird analyst Mircea Dobre, who believes that farmers could soon get some relief from the brutal combination of higher fuel costs and lower crop prices that have weighed on their profits in recent years.

Dobre estimates that Deere's earnings per share will grow to roughly $25 in 2027 and well over $30 in 2028 as these trends take hold. The agricultural machinery and heavy construction equipment maker generated $18.50 in per-share profits in fiscal year 2025.

As a result of this expected surge in profitability, Dobre placed an outperform rating on Deere's stock and lifted his share price forecast from $640 to $800. This new price target represents potential gains of more than 22% for investors who buy shares now.