Analyst Michael Feniger of Bank of America Securities reiterated a Buy rating on Caterpillar, retaining the price target of $495.00.
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Michael Feniger has given his Buy rating due to a combination of factors, including the expectation that Caterpillar will effectively manage the tariff headwinds impacting its business. Despite the current challenges posed by increased tariffs, particularly in the Construction segment, Feniger anticipates that Caterpillar will implement strategies to mitigate these impacts by 2026. This expectation is based on Caterpillar’s historical ability to adapt and gain momentum, as seen in its recovery post-COVID.
Furthermore, Feniger highlights a positive outlook for 2026, driven by a strong secular thesis in the Power segment and a potential turnaround in the Machinery segment following a downturn in 2024-2025. While the Construction segment is not expected to experience a significant upcycle, the anticipated end of dealer destocking, potential Fed rate cuts, and favorable pricing comparisons are expected to reduce headwinds, allowing other segments like Energy & Transportation and mining to contribute to EPS growth. These factors collectively support the Buy rating, with a price objective set at $495.00 USD.
In another report released today, TR | OpenAI – 4o also upgraded the stock to a Buy with a $476.00 price target.
CAT’s price has also changed moderately for the past six months – from $343.950 to $434.910, which is a 26.45% increase.