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DA Davidson Boosts Deere (DE) Target on Improving Demand Outlook

Deere & Company (NYSE:DE) is included among the 13 Best March Dividend Stocks to Buy.

Image by Alexsander-777 from Pixabay

On February 23, DA Davidson raised its price recommendation on Deere & Company (NYSE:DE) to $775 from $580. The firm maintained a Buy rating on the shares. The analyst made the change after the company reported stronger-than-expected Q1 results. The firm said order activity in the large agriculture segment is showing signs of improvement. At the same time, Construction and Small Ag/Turf businesses are providing stronger support than before. This combination has helped stabilize overall demand and improve the outlook.

During its fiscal Q1 2026 earnings call, Christopher Seibert, Manager of Investor Communications, said John Deere reported an operating margin of 5.9% in its equipment operations. He noted that every business segment delivered year-over-year net sales growth. The small agriculture and turf segment, along with Construction & Forestry, stood out in particular. Both recorded top-line growth of more than 20%. Seibert said the company’s performance exceeded expectations, supported by higher shipping volumes than originally planned.

He also pointed to improving order trends during the quarter. Order books strengthened across several product categories, especially in small agricultural equipment, turf products, and construction machinery. This improvement reflects more consistent demand across key markets. Seibert added that recent trends over the past three months have reinforced the company’s view that fiscal 2026 will likely mark the low point in the current cycle. He said the company expects its equipment operations to deliver mid-single-digit net sales growth for the full fiscal year.

Deere & Company (NYSE:DE) manufactures and sells agricultural, construction, and forestry equipment.

While we acknowledge the potential of DE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DE and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 14 Best GARP Stocks to Buy According to Analysts and 13 Best Long-Term Dividend Stocks to Invest in Right Now

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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