Deere's (DE) widened 2025 net profit guidance represents more of a downside scenario rather than a worsening outlook, Oppenheimer said in a research note Friday.

Deere, which reported fiscal Q2 earnings Thursday, cut the low end of its fiscal 2025 net income guidance and now expects net income of between $4.75 billion and $5.5 billion, compared with a prior forecast of $5 billion to $5.5 billion. Analysts surveyed by FactSet expect $5 billion.

Oppenheimer analysts said they believe the base-case is for the agricultural equipment supplier to inflect to EPS growth in fiscal Q4 and boost its 2026 outlook.

Oppenheimer kept its outperform rating on the stock and raised its price target to $555 from $513.

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