Deere & Company (NYSE: DE) is coming off record highs but faces a tougher stretch as equipment demand cools and farm income slows. The stock trades near $462/share, with sentiment shifting toward a mid-cycle reset rather than renewed growth.
Recently, Deere reported fiscal Q3 2025 results that showed slowing equipment sales and weaker farmer sentiment, but management reaffirmed its full-year guidance and announced expanded investment in autonomous tractors and connected precision-ag technology. The company also rolled out new software tools within its Operations Center platform, reinforcing its transition toward higher-margin, data-driven services.
This article explores where Wall Street analysts think Deere could trade by 2027. We’ve pulled together consensus targets and TIKR’s valuation model to outline the stock’s potential path based on the latest forecasts and company initiatives. These figures reflect current analyst expectations and are not TIKR’s own predictions.
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Analyst Price Targets Suggest Modest Upside
Deere trades around $462/share today. The average analyst price target is $523/share, which points to roughly 13% upside over the next year. Forecasts vary widely, reflecting mixed sentiment about where demand and margins will stabilize.
- High estimate: ~$724/share
- Low estimate: ~$440/share
- Median target: ~$512/shar
- Ratings: 7 Buys, 5 Outperforms, 11 Holds
For investors, a 13% potential gain signals modest upside. The market views Deere as fairly valued for now, with potential to outperform if equipment demand steadies or if construction and forestry margins hold up better than expected.
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Deere: Growth Outlook and Valuation
Deere’s fundamentals point to slower growth after several strong years.
- Revenue is expected to decline about 1% annually through 2027
- Operating margins are projected to hover near 16.5%
- Shares trade around 25× forward earnings, roughly matching historical averages
- Based on analysts’ average estimates, TIKR’s Guided Valuation Model using a 17.6× forward P/E suggests ~$424/share by 2027
- That implies about (8%) total downside, or roughly (4%) annualized returns
For investors, this reflects a mature business entering a cooling phase. Deere remains highly profitable with strong cash generation, but near-term returns may stay muted until farm and construction cycles strengthen.
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What’s Driving the Optimism?
Deere remains one of the most dominant players in agricultural and construction equipment worldwide. Its precision agriculture technology continues to gain traction, helping farmers boost productivity through automation and data insights. This focus on connected machinery and software services is gradually shifting Deere toward higher-margin, recurring revenue opportunities.
The company’s construction and forestry division also adds diversification, helping offset periods of weaker farm demand. For investors, these strengths suggest Deere has the tools to sustain profitability through the current downcycle and position for renewed growth once agricultural spending recovers.
Bear Case: Cyclical Pressure and Valuation
Despite these positives, Deere’s valuation reflects uncertainty around the farm economy. Equipment orders are softening as higher interest rates and lower crop prices make financing large machinery purchases more difficult. That pressure is already visible in earnings forecasts, which show modest declines through 2027.
At roughly 25× forward earnings, Deere doesn’t look cheap for a cyclical name facing contracting demand. For investors, the risk is that earnings expectations may still be too high if the ag slowdown persists longer than expected. Until visibility improves, the stock could remain range-bound.
Outlook for 2027: What Could Deere Be Worth?
Based on analysts’ average estimates, TIKR’s Guided Valuation Model using a 17.6× forward P/E suggests Deere could trade near $424/share by 2027. That would represent about an 8% total decline from today’s price, or roughly (4%) annualized returns.
While this outlook assumes modest margin recovery and steady cash generation, it already prices in cautious optimism. To unlock stronger upside, Deere would need to see a rebound in farm sentiment and faster adoption of its autonomous and precision-ag technology.
For investors, Deere looks like a high-quality industrial in a cooling phase. The company’s innovation pipeline supports long-term value, but near-term gains may stay limited until global demand picks up.
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