HARTFORD, Conn. (AP) -- Shares of Deere & Co. jumped Monday as a Morgan Stanley analyst upgraded the world's largest farm machinery manufacturer on rising demand and higher corn prices.

Analyst Robert Wertheimer upgraded the company based in Moline, Ill., to "Overweight," or "Buy," from "Equal-weight," or "Neutral."

"Demand for U.S. farm equipment is growing as customers add acreage, a secular phenomenon that is widely underestimated," Wertheimer said in a client note.

A group of about 25,000 very large farmers doubled their acreage over 10 years, taking 30 million acres from smaller farmers who do not buy new equipment, Wertheimer said. The increased acreage translates to 6,000 additional tractors needed annually, he said.

In addition, corn prices should rise in 2010 amid rising demand for feed and ethanol, he said.

Deere & Co. is scheduled to release its fourth-quarter earnings results before the market opens Wednesday.

Shares rose $1.66, or 3.3 percent, to $52.49 in morning trading after rising to a 52-week high of $53.59 earlier in the session.