Wells Fargo analyst Andrew Casey raised his price target for Deere (DE) shares to $170 citing yesterday's "strong" Q4 performance and above consensus fiscal 2018 outlook.

Deere is poised to benefit from an improving farm equipment demand cycle, acquisition accretion and secular growth, Casey told investors last night in a post-earnings research note. He continues to believe the company can generate "significantly" higher returns and earnings power this cycle compared to the prior cycle.

The analyst maintains an Outperform rating on the shares. Deere closed yesterday up 4%, or $5.87, to $145.25.