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Wall Street's latest autonomous vehicle play may surprise investors. Machinery manufacturer Deere could be the latest company to cash in on the AV trend with its new self-driving
tractor, according to Baird. "The Deere autonomous tractor is here and it's quite impressive," Baird's Mircea Dobre said in a note Friday. "The tractor
revolutionizes how critical jobs (tilling, planting, harvesting) will be done, rendering prior modes of farming obsolete and setting up a multi-year fleet upgrade cycle." Once in
operation, the machine does not need any human supervision to perform the job, making it the first fully autonomous tractor, Baird highlighted The firm raised its price target on Deere to
$475 from $425. The new projection implies more than 25% upside from Friday's closing price. The tractor is just the start, according to Baird. Deere is also working on other equipment
like sprayers and combine harvesters, as well as processes like planting and spraying, the firm noted. Deere plans to sell the autonomous solution as a subscription service. Baird said the
autonomy subscriptions are "likely to enhance long-term margins and returns" and could be a "multi-billion revenue stream." The algorithm from Deere subsidiary Blue River
is the "secret sauce" that makes the company's autonomy solutions unique, Baird said. "We remain buyers of Deere with increased long-term conviction," Dobre said.
