Deere has been on fire in 2026. Baird sees even more returns ahead
Investors should scoop up shares of Deere as the outlook for agriculture in North America improves, according to Baird. Analyst Mircea Dobre upgraded the tractor builder to outperform from neutral. His price target of $800, up from $640 implies upside of 27% from Friday’s close. “Mid-27 corn futures are now above farmer breakevens, with soy improving as well; deteriorating crop condition and MY26/27 stocks-to-use ratios both indicate sustainable price momentum and rising per-acre 2027 farmer margins, which closely correlate with future equipment demand,” Dobre wrote to clients. DE YTD mountain DE year to date Corn futures last week hit their highest levels in more than three years and are up nearly 22% year to date, primarily driven by expectations of tighter supply. Soybeans futures are also up 22% in 2026. Deere “provides the cleanest setup given high exposure to North America row crop equipment demand; this is the stock that “gets bought first” when investors look for a fundamental inflection in Ag – in fairness, this explains the YTD stock performance; but we think there is more to come in 2027,” Dobre said. Indeed, Deere shares are up more than 35% in 2026. That puts it on pace for its seventh annual advance in eight years. It would also mark the stock’s best yearly performance since 2020, when it surged 55%. The stock rose more than 1% following Baird’s rating change. Analysts are split on Deere. Of the 26 who cover it, 12 rate it a hold, while the remaining 14 have a buy or strong buy rating, according to LSEG.
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