UBS Remains Bullish on Deere (DE) Despite Weakness in Farm Equipment Cycle: Here’s Why
UBS maintains a 'Buy' rating on Deere (DE) despite a cyclical slowdown in farm equipment, citing signs of stabilization. DE reported Q3 2026 sales of $12.6B, up 5%, and net income of $1.38B. UBS lowered its price target to $728, expecting 2027 to be a transition year with growth in 2028. DE's long-term growth may be driven by advanced technologies. Bears cite risks from farm economics and tariffs.
How this was made
The 30-second read
Why it matters
The earnings beat and guidance raise expectations for a bottoming cycle in 2026, supporting a potential price upside.
Market read
Deere's earnings and guidance update provide fresh material for traders, with a likely positive impact on the stock and sector.
What to watch
Tariff costs and soft demand in Brazil/Europe could pressure margins.
Background
Deere operates in a cyclical farm equipment market currently facing demand softness.
Ticker impact
Deere reported Q3 2026 revenue of $12.6B (+5%) and EPS $5.10, and raised FY2026 net income guidance to $4.75‑$5.00B.
Potential short‑term price rally as investors digest the beat and guidance lift.
The numbers are better than expectations and the guidance upgrade is a fresh, material development.
Market effects
Stabilizing outlook for farm equipment sector may lift peers.
U.S. agricultural equipment makers could see improved sentiment.
Positive signal for global ag‑machinery supply chains.
Counterpoint
If the agricultural downturn deepens, the guidance lift may be insufficient.
Key entities
- companyDeere & Company
U.S. agricultural equipment manufacturer (ticker DE).
- analyst_firmUBS
Maintains Buy rating, raises price target to $728.
