Deere price target raised to $511 from $440 at Baird

Baird analyst Mircea Dobre raised the firm’s price target on Deere (DE) to $511 from $440 and keeps an Outperform rating on the shares. Production cuts are having the desired effect with dealer destocking occurring in both agriculture and construction, the analyst tells investors in a research note. The firm added that the 2025 North America Large Ag outlook embeds another 30% decline, which would place industry volumes near multi-decade lows, and small tractor volumes lowest in 10 years. Amidst all of this, Deere will deliver considerably higher margins and earnings than in prior cycles, adding fuel to the normal cyclical multiple expansion on trough fundamentals, the analyst adds.