Sep. 2 at 10:19 PM
Evercore ISI upgraded Deere & Company and CNH Industrial to Outperform from In Line, citing improving conditions across the agricultural machinery sector. The upgrades follow a two-week rally driven largely by higher crop prices. Analyst David Raso raised his price target for Deere to
$813 from
$632 and for CNH to
$18 from
$12.50.
Raso pointed to an aging U.S. high-horsepower farm fleet, reduced dealer inventories and advances in precision agriculture technology. Current crop prices, even with a modest decline, could allow U.S. equipment purchases in 2027 to return to replacement-demand levels for the first time in years.
Evercore projects 2027 EPS of
$26.50 for Deere and
$0.82 for CNH, rising to
$33.05 and
$1.15 in 2028. The estimates assume replacement demand drives 37% growth in combine sales and 27% growth in high-horsepower tractors. Raso expects limited contributions from Brazil and Europe, which remain below mid-cycle levels.
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