Deere and AGCO stocks rally 4% after Baird upgrades on expected 2027 North America crop demand recovery.

Baird upgraded Deere and AGCO stocks to Outperform, citing a forecasted recovery in North America row crop demand in 2027. Deere, already up 36% this year, gained 4% on the upgrade with a new price target of $800, reflecting its premium market position. AGCO, up 10% year-to-date, also rose 4%, with a price target raised to $150, highlighting its potential for earnings growth from operating leverage. The upgrades suggest optimism for the agricultural equipment sector, though risks remain if the recovery is delayed or crop prices fall.