Jefferies upgrades Deere to Hold, signaling reduced downside risk despite a $550 price target below current price.

Jefferies upgraded Deere & Company to Hold with a $550 price target, below its current $596 trading price, indicating cautious confidence that the worst of the agricultural downturn may be over. Deere's strong Q1 FY2026 earnings, including better-than-expected EPS and revenue, and a robust Construction & Forestry segment, support this view. Despite ongoing challenges in the large agriculture segment and tariff costs, Deere raised its FY2026 net income guidance. The upgrade suggests reduced downside risk and a growing recovery narrative, making it a hold for current investors rather than a buy signal for new ones.