The shares of Deere (DE) are climbing after UBS upgraded the shares, citing its belief that corn prices could rise, giving a boost to the farm equipment maker. UBS’ upgrade comes after another research firm, BMO Capital, raised the shares to Outperform from Market Perform on May 24.

UBS UPGRADE: The chances of corn prices rising have increased, according to UBS analyst Steven Fisher, who upgraded Deere to Buy from Neutral. Based on recent weather patterns, a, strong El Nina is on the way, the analyst stated. According to Fisher, if that forecast does materialize, hot and dry conditions could lower corn yields and increase prices. If corn prices rise, sentiment towards Deere should improve, the analyst stated. Moreover, he estimates that, in a base case scenario for corn prices, Deere’s earnings per share could exceed expectations and reach $4.50 in 2018. Asserting that the company’s profits are nearing a bottom, Fisher increased his price target on the name to $94 from $82.

BMO UPGRADE: After underperforming significantly since 2011, Deere is “an under-owned stock” with an attractive valuation, wrote BMO’s Joel Tiss. In recent years, Deere has worked hard to lower its costs, output and inventory, leaving it well-positioned to generate “higher returns” when crop prices rebound, the analyst stated. He thinks that Deere’s EPS can reach $6 in the middle of the next cycle. Moreover, Tiss thinks that the company will benefit from growing global crop demand and reduced competition in the wake of sector consolidation. He raised his price target on the name to $96 from $70.

WHAT’S NOTABLE: Caterpillar (CAT) and AGCO (AGCO) also make farm equipment.

PRICE ACTION: In early trading, Deere rose 2.6% to $82.57, while AGCO gained 2.8% to $52.76 and Caterpillar advanced nearly 1.5% to $73 per share.