Caterpillar (NYSE:CAT) ought to contemplate shopping for Agco (NYSE:AGCO) to broaden into farming equipment, analysts at Baird stated Thursday.

“The previous 5 years have proven that the ag vertical is rising because the equipment chief” in self-driving expertise, based on Baird. It sees the opportunity of retrofitting older equipment with new expertise, and to develop subscription income as Deere (DE) is doing.

Deere’s (DE) acquisition of Wirtgen in 2017 offers an concept of what a Caterpillar (CAT) buy of Agco (AGCO) would appear like, based on Baird.

An acquisition of Agco (AGCO) would mark Caterpillar’s (CAT) return to the farming equipment enterprise. The corporate offered its tractor line to Agco (AGCO) in 2002.