US Senator's Outburst Against Norway's Sovereign Wealth Fund
Graham's Reaction: Senator Lindsey Graham criticized Norway's $2 trillion sovereign wealth fund for divesting its $2.1 billion stake in Caterpillar (NYSE: CAT), citing ethical concerns over the company's equipment being used in Israeli military operations in Gaza and the West Bank. He labeled the decision as "BS" and threatened potential repercussions, including tariffs and visa denials.
Political Context: Graham's comments came during a press conference in Tel Aviv on August 28, just days before Norway's September 8 election, highlighting the politically sensitive nature of the situation. The existing 15% tariff on Norwegian goods from the Trump administration adds to the tension surrounding trade relations.
Norway's Response and Fund's Independence
Clarification from Norway's Prime Minister: In an effort to mitigate the backlash, Norwegian Prime Minister Jonas Gahr Støre reached out to Graham, emphasizing that the fund operates independently through Norges Bank Investment Management, which is guided by an ethics council established by parliament.
Investment Strategy: Despite the controversy, over half of the fund's investments remain in US stocks and bonds, indicating that a full-blown trade war would not be beneficial for either party involved. The situation underscores the intersection of investment ethics, geopolitical tensions, and economic interests.
CAT
$595.94+Infinity%1D
Analyst Views on CAT
Wall Street analysts forecast CAT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CAT is 600.80 USD with a low forecast of 380.00 USD and a high forecast of 730.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
18 Analyst Rating
Wall Street analysts forecast CAT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CAT is 600.80 USD with a low forecast of 380.00 USD and a high forecast of 730.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Buy
6 Hold
1 Sell
Moderate Buy
Current: 589.760
Low
380.00
Averages
600.80
High
730.00
Current: 589.760
Low
380.00
Averages
600.80
High
730.00
BWG Global
Negative -> Mixed
upgrade
2025-12-16
New
Reason
BWG Global
Price Target
2025-12-16
New
upgrade
Negative -> Mixed
Reason
BWG Global upgraded its view of Caterpillar to Mixed from Negative, citing checks.
Citi
Buy
maintain
$670 -> $690
2025-12-11
New
Reason
Citi
Price Target
$670 -> $690
2025-12-11
New
maintain
Buy
Reason
Citi raised the firm's price target on Caterpillar to $690 from $670 and keeps a Buy rating on the shares. The firm updated models in the machinery group as part of its 2026 outlook. Citi sees value in the space and has the most conviction in construction and mining growth entering next year. The agriculture and truck markets could remain challenged in the near-term, the analyst tells investors in a research note.
Morgan Stanley
Equal Weight
maintain
$136 -> $147
2025-12-10
Reason
Morgan Stanley
Price Target
$136 -> $147
2025-12-10
maintain
Equal Weight
Reason
Morgan Stanley raised the firm's price target on Oshkosh (OSK) to $147 from $136 and keeps an Equal Weight rating on the shares. Troughing US non-residential construction spending in 2026 "might only be good for some construction stocks," contends the analyst, who would be buyers of Terex (TEX), sees "reasons to remain optimistic" on CRH Plc (CRH), Martin Marietta (MLM) and United Rentals (URI), and continues to expect shares of Caterpillar (CAT) to underperform the group.
Morgan Stanley
Angel Castillo
maintain
$131 -> $140
2025-12-10
Reason
Morgan Stanley
Angel Castillo
Price Target
$131 -> $140
2025-12-10
maintain
Reason
Morgan Stanley analyst Angel Castillo raised the firm's price target on CRH Plc (CRH) to $140 from $131 and keeps an Overweight rating on the shares. Troughing US non-residential construction spending in 2026 "might only be good for some construction stocks," contends the analyst, who would be buyers of Terex (TEX), sees "reasons to remain optimistic" on CRH, Martin Marietta (MLM) and United Rentals (URI), and continues to expect shares of Caterpillar (CAT) to underperform the group.
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.
