RBC Capital Markets sees significant growth opportunities ahead for Deere . The bank initiated shares of the construction machinery manufacturer at an outperform rating. Analyst Sabahat Khan’s $542 price target implies that shares of Deere could rally 18% from here. “Our Outperform rating and valuation multiple reflect the view that 2025 likely reflects a cycle trough and that results and sentiment should improve through 2026,” Khan wrote. “Our target multiple is at a premium vs. peers and Deere’s historical average, and fairly reflects the evolution of the Deere’s earnings profile (directional improvement in stability), as well as the top-line growth and margin runway ahead.” The analyst pointed to Deere’s market leading position towards tech-enabled agriculture, which offers tech-enabled farm equipment such as tractors, combines and sprayers. The company has also created autonomous solutions that reduce its business cyclicality and drive differentiation. DE YTD mountain DE YTD chart “The company offers tech-enabled and ‘connected’ solutions across the Ag production cycle that provide tangible and measurable benefits for farmers,” Khan added. “The company’s long and meaningful investments in technology/R & D (+2x its closest peers) have allowed the company to widen the moat relative to the rest of the field. Over the medium term, we expect increased proliferation/uptake of Deere’s technology-enabled offering to help drive reduced cyclicality/reliance on the Ag cycle.” Khan also sees significant growth opportunities ahead for Deere in Brazil, which has emerged as a global leader in agriculture. Deere’s existing multi-decade presence in the market positions it well to take advantage of this future growth, he added. “Beyond several secular tailwinds at the sector level (i.e. becoming a top agricultural supplier for China), the outlook for increased allocation of land toward farming, and the significant mix of very large farms, combine to make Brazil a very attractive market for Deere,” the analyst wrote. Deere stock has added 9% in 2025. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
