Norway's Sovereign Wealth Fund Changes: Norway is considering allowing its $2.1 trillion sovereign wealth fund to invest in major defense companies starting in 2027, after over 20 years of restrictions due to ethical guidelines against investing in firms involved in nuclear weapons.
Political Support for Investment Shift: The Norwegian parliament has shown support for reviewing these ethical guidelines, with backing from multiple political parties, highlighting a shift in perspective on defense spending amid the ongoing Ukraine war and changing security dynamics in Europe.
Ethical Dilemma in Defense Spending: The government faces criticism for the paradox of purchasing military equipment from companies it cannot invest in, raising questions about the ethics of such financial decisions in light of Norway's NATO membership and security needs.
Market and Investment Considerations: Analysts suggest that the evolving geopolitical landscape necessitates a reevaluation of ethical investment guidelines, as Norway navigates the complexities of international relations and the potential risks associated with divesting from certain companies.
Wall Street analysts forecast CAT stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CAT is 620.54 USD with a low forecast of 395.00 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.
15 Analyst Rating
Wall Street analysts forecast CAT stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for CAT is 620.54 USD with a low forecast of 395.00 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.
8 Buy
6 Hold
1 Sell
Moderate Buy
Current: 648.410
Low
395.00
Averages
620.54
High
730.00
Current: 648.410
Low
395.00
Averages
620.54
High
730.00
Wells Fargo
Overweight
maintain
$675 -> $702
2026-01-23
New
Reason
Wells Fargo
Price Target
$675 -> $702
AI Analysis
2026-01-23
New
maintain
Overweight
Reason
Wells Fargo raised the firm's price target on Caterpillar to $702 from $675 and keeps an Overweight rating on the shares. The firm reiterates its positive outlook for the Machinery, Industrials & Environmental Services space heading into earnings. Wells argues the Machinery supply-driven recovery is broadening to new equipment, non-residential lead indicators are accelerating, and cash conversion is improving.
Oppenheimer
Oppenheimer
Outperform
maintain
$645 -> $700
2026-01-20
New
Reason
Oppenheimer
Oppenheimer
Price Target
$645 -> $700
2026-01-20
New
maintain
Outperform
Reason
Oppenheimer raised the firm's price target on Caterpillar to $700 from $645 (CAT) and keeps an Outperform rating on the shares. The firm notes that the run-up to Q4 2025 earnings season has seen a flurry of macro factors impacting stocks in its Industrial Efficiency coverage, including rate cut dynamics, the Venezuela-U.S. military confrontation, and the Nvidia (NVDA) Vera Rubin platform launch. Investor sentiment has improved materially for short-cycle and equipment-focused names, while cooling on data center-exposed stocks. Many industrial verticals have stabilized, and rate cuts, lapping tariff headwinds, OBBBA benefits, and additional prospective measures ahead of midterms could lend to broader recovery; some of this optimism arguably reflects in recent market moves, Oppenheimer adds.
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Bernstein
Market Perform
maintain
$557 -> $630
2025-12-19
Reason
Bernstein
Price Target
$557 -> $630
2025-12-19
maintain
Market Perform
Reason
Bernstein raised the firm's price target on Caterpillar to $630 from $557 and keeps a Market Perform rating on the shares. Discussing the sector, the firm notes that fundamentally speaking, 2025 was challenging with street estimates falling 5%-10% and core end markets going through a classic cyclical downturn. 2026 should be a recovery year driven by monetary and fiscal policy alignment, which restart positive estimate revisions - low-/mid-single digit upside, Bernstein argues.
BWG Global
Negative -> Mixed
upgrade
2025-12-16
Reason
BWG Global
Price Target
2025-12-16
upgrade
Negative -> Mixed
Reason
BWG Global upgraded its view of Caterpillar to Mixed from Negative, citing checks.
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.
