Deere to rally 20% as crop prices stabilize: BMO

Equipment for sale at a John Deere dealer in Denver, May 14, 2015.
Rick Wilking | Reuters

Deere's lean cost structure should lead to stronger earnings power when industry conditions get better, according to BMO Capital Markets.

"Deere has worked very hard to lower costs, output, and inventory, which sets the stage for higher returns when crop prices finally rebound and volume eventually improves," BMO Capital Markets' Joel Tiss wrote in a note to clients Tuesday.