"Historically, timing cyclical swings and commodity-price movements was critical when investing in Deere and other heavy-equipment stocks," the firm noted.
"Today, however, we believe that narrative has changed somewhat, and it is okay to own high-quality, cyclical companies that have successfully demonstrated an ability to rapidly flex production, cut costs, and diversify revenue streams," BMO added.
The firm asserted that Deere has worked to diminish its earnings volatility while continuing to invest back into its business.
BMO reaffirmed its "Outperform" rating on the stock.
Shares of Deere were higher during late morning trading on Friday.
Stocks have rebounded following a sharp sell off last week. Jim Cramer believes the rebound is real and gives investors advice on how to play the market going forward.