Deere & Company Target Raised to $775 Following 20%+ Segment Growth, 5.9% Margin
DA Davidson raised its price target for Deere & Company to $775 from $580 after Q1 equipment operating margin reached 5.9% and every business segment, including small ag and Construction & Forestry, delivered net sales growth exceeding 20%. Deere expects fiscal 2026 equipment net sales to achieve mid-single-digit growth.
1. Price Target Increase
DA Davidson boosted its price target on Deere & Company to $775, up from $580, retaining a Buy rating after the company reported stronger-than-expected fiscal Q1 results that signaled improving demand across its equipment operations.
2. Q1 Results Highlights
In fiscal Q1 2026, Deere’s equipment operations achieved an operating margin of 5.9% and recorded year-over-year net sales growth in every segment, with the small agriculture and turf segment and the Construction & Forestry business each delivering more than 20% top-line growth.
3. Order Trends and Demand Outlook
Order activity strengthened notably in small agricultural equipment, turf products and construction machinery, reflecting more consistent demand across key markets and suggesting that current quarter order trends mark the trough of the cycle.
4. Fiscal 2026 Growth Forecast
Deere expects its equipment operations to deliver mid-single-digit net sales growth for full fiscal 2026 and views the recent quarter as the low point in its cycle, supported by higher shipping volumes and stabilizing demand.