Baird Just Upgraded Deere Stock. Here's Why.

Baird's senior analyst Mircea Dobre believes an upcoming recovery cycle in agricultural equipment will drive Deere (DE) shares higher from current levels. In a research note yesterday, Dobre upgraded the NYSE-listed giant to “Outperform” and raised his price target to $800, indicating potential upside of about 23% from here. 

His bullish call is particularly significant given Deere stock has been a major outperformer in 2026, currently up more than 40% year-to-date. 

What Made Baird Upgrade Deere Stock Today?

Baird's bullish thesis centers on signs that the multi-year downcycle in large agricultural machinery demand is finally approaching its trough. 

Stabilizing grain and oilseed prices, particularly corn and soybeans, are expected to improve farm profitability and strengthen growers’ cash flows, creating a more favorable backdrop for equipment spending.

As grower balance sheets firm up, capital expenditures on heavy machinery are projected to rebound over the next two years, Dobre told clients. 

Dealer inventory normalization and steady early-order book indicators equip DE stock with strong structural tailwinds, putting it in a prime position to capitalize as field replacement cycles resume across core farming markets.

What Could Drive DE Shares Higher in 2026?

Beyond macroeconomic improvements, Dobre highlighted Deere’s operational excellence, pricing discipline, and high-margin product mix for his bullish view. 

Non-agricultural divisions, notably Construction & Forestry, continue to provide a solid earnings cushion (operating profit up 84% in Q2) through sustained infrastructure investment. Plus, continued adoption of DE’s precision agriculture technology, such as automated guidance and targeted spray systems, is expanding its margins.

Baird projects these efficiency gains and the firm’s transition toward software-as-a-service (SaaS) and pay-per-use recurring revenue models to drive Deere’s normalized earnings power toward the mid-$30s by 2028, justifying a premium valuation multiple. 

Note that DE currently pays a dividend yield of 1% as well. 

Wall Street Remains Bullish on Deere & Co

While not nearly as bullish as Baird, other Wall Street firms remain constructive on DE shares as well. 

According to Barchart, the consensus rating on Deere & Co sits at “Strong Buy,” with a mean price target of $665 indicating the stock’s year-to-date rally is not out of steam just yet.