“Time to Buy the Dip?” Deere Stock (DE) Pops after Jefferies Upgrade on Improved Risk/Reward

Deere & Co. (DE) shares climbed more than 5% on Wednesday after Jefferies analyst Stephen Volkmann upgraded the stock to Hold from Sell with a price target of $550. Given the stock has fallen about 15% since mid‑February, the analyst believes the risk/reward is now more balanced.

Volkmann called Deere “one of our highest-quality companies,” citing its strong product innovation, deep market penetration, and valuable data assets. Also, he noted that Deere’s long-term revenue cycles remain compelling. Historically, the company’s trough-to-peak revenue growth has averaged about 65% across the last four cycles.

Looking ahead, the analyst still expects about 75% growth in the next cycle, driven mostly by a 65% jump in volume and 10% pricing, with a 35% incremental margin over the next three years.

Deere’s Legal Troubles

Recently, Deere agreed to pay $99 million to settle a major class-action lawsuit accusing the company of monopolizing repair services by restricting access to essential diagnostic software and tools.

The settlement will compensate farmers who paid Deere or its dealers for certain repairs since 2018. Deere denies wrongdoing but says the agreement allows it to “move forward” and stay focused on customers.

The deal also includes 10 years of expanded access to digital repair tools, a significant shift in the long‑running right‑to‑repair debate.

Separately, Deere remains entangled in a federal antitrust case brought by the FTC, which alleges the company unfairly restricted repair access. A judge previously ruled that Deere must face the lawsuit, rejecting its attempt to dismiss the case.

Is DE stock a Good Buy Now?

Turning to Wall Street, DE stock has a Moderate Buy consensus rating based on 10 Buy and six Hold recommendations. The average Deere stock price target of $695.46 implies an upside potential of 14.74%.