RBC: Deere Management Expects 2026 to Be Ag Cycle Bottom

Opening Paragraph

RBC Capital Markets reported that Deere & Company (NYSE: DE) management expects 2026 to mark the bottom of the agriculture cycle, with a recovery expected thereafter. This comes as the sector faces headwinds from lower crop prices and reduced demand for farm equipment.

Rating Change

RBC did not announce any change in its rating for Deere shares in the report. However, management's expectation that 2026 is the bottom could support the stock in the medium term.

Analyst Rationale

RBC analysts believe management's outlook is based on factors such as stabilizing crop prices and improving global food demand. Additionally, lower inventories of farm equipment may help support prices.

Context

Deere's stock (DE) has underperformed in 2025 due to weak sales in the agriculture segment. Other analysts, such as those at Jefferies and Goldman Sachs, have mixed views, with some expecting the bottom to come in 2027.

Conclusion

Management's expectation that 2026 is the bottom could be a positive signal for investors, but macroeconomic factors and commodity prices should be monitored to confirm the recovery.