The firm increased its price target to $94 from $82 on shares of the agricultural and construction equipment maker because of improving corn prices, Barron's reports.
"We expect higher corn prices to improve the sentiment on Deere stock," analysts explained in a note. "Deere still trades with corn, in our view, and we see increasing likelihood of higher corn prices."
Recent weather patterns suggest hot and dry conditions are ahead, leading to lower corn yields and higher corn prices.
Additionally, Deere's earnings are close to bottoming and the stock has shown more resilience on earnings downside, analysts noted.
"Sentiment remains cautious on Deere, and short interest is above average for the group," analysts added, according to Barron's. "If corn prices rally, we expect more positive sentiment on the stock."
Separately, Deere has a "buy" rating and a letter grade of B at TheStreet Ratings because of the company's good cash flow from operations and notable return on equity.
You can view the full analysis from the report here: DE
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.