** BMO Capital raise price target on agricultural-equipment maker Deere & Co DE.N to $460 from $425, a downside of 12.6% to the stock's last close

** Rating unchanged at 'market perform'

** BMO raises Deere's 2026 adj EPS forecast to $21.43 from $21.33 due to expected improved retail demand

** However, cuts co's 2025 adj. EPS guidance to $18.62 from$19.20

** Says co remains confident of bringing down inventories in coming quarters through increased dealer incentive funds

** Adds DE plans to produce mid-size tractors in Europe, expecting return of retail demand

** Co on Thursday posted Q2 profit that beat estimates

** Ten of 24 brokerages rate the stock "buy" or higher, thirteen "hold" and one "sell"; their median PT is $545- as per LSEG data

** As of last close, stock had risen 24.2% YTD

(Reporting by Apratim Sarkar)

((Apratim.Sarkar@thomsonreuters.com))