Analyst Raises Caterpillar Price Target to $825 Amid Strong Earnings and Customer Spending
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy CAT?
Source: Benzinga
- Customer Capital Expenditure Boost: Analyst notes that The Williams Companies' announcement of substantial capital expenditure increases for 2026 is expected to significantly enhance Caterpillar's business prospects, particularly in its turbine and engine sectors, thereby bolstering the company's backlog and growth trajectory.
- Strong Earnings Performance: Caterpillar reported fourth-quarter 2025 sales of $19.133 billion, an 18% increase from $16.215 billion year-over-year, with adjusted EPS of $5.16 exceeding the $4.66 estimate, reflecting robust market performance and operational efficiency.
- Technical Analysis Indicates Strength: Caterpillar's stock is trading well above all key moving averages, indicating strong upward momentum, although the RSI at 73.61 suggests an overbought condition that may lead to a pullback, warranting caution among traders.
- Positive Long-Term Trend: The stock has delivered an impressive 12-month return of 113.44% and is currently at a new 52-week high, underscoring the company's strong growth potential in infrastructure and power generation sectors, which are expected to outperform in the coming years.
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Analyst Views on CAT
Wall Street analysts forecast CAT stock price to fall
15 Analyst Rating
8 Buy
6 Hold
1 Sell
Moderate Buy
Current: 758.290
Low
395.00
Averages
620.54
High
730.00
Current: 758.290
Low
395.00
Averages
620.54
High
730.00
About CAT
Caterpillar Inc. is a manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The Company operates through its various segments, namely Construction Industries, Resource Industries, and Energy & Transportation. It also provides financing and related services through its Financial Products segment. The Construction Industries segment is primarily responsible for supporting customers using machinery in infrastructure and building construction applications. The Resource Industries segment develops and manufactures high productivity equipment for both surface and underground mining operations, as well as provide hydraulic systems, electronics and software for its machines and engines. The Energy & Transportation segment offers product and services that includes reciprocating engines, generator sets, integrated systems and solutions, turbines and turbine-related services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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