Shares of Deere (DE) are lower nearly 5% since last Friday when the agricultural equipment manufacturer reported weaker-than-expected third quarter revenue.

Buit Credit Suisse analyst Jamie Cook is remaining optimistic about the company.

"Looking into 2018, and assuming sales growth, we still believe DE can put up good [agriculture] incrementals, adj. for SiteOne gains, as the negatives lessen (warranty and material costs), coupled with benefits from the savings program and the potential for positive pricing," Cook wrote in a note obtained by Barron's.

More importantly, Cook continued, is that full-year 2018 indications are "more encouraging" than previously expected.

"Specifically, DE noted that based on initial indications from the early order program orders for planters and sprayers were up strongly which is typically a leading indicator of [agriculture] equipment demand," Cook explained.

Additionally, orders from Deere's construction & forestry unit are up 40% currently, compared to between 30% and 35% last quarter, Cook noted.

"Bottom line, the debate on DE for FY'18 remains centered on [agriculture] equipment demand given the weak commodity backdrop," Cook said.

Shares of Deere were rising during Monday morning trading. 

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