Morgan Stanley analyst Angel Castillo maintained a Hold rating on Caterpillar today and set a price target of $283.00.
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Angel Castillo has given his Hold rating due to a combination of factors surrounding Caterpillar’s current market position and future prospects. The proprietary Machinery Construction (MaC) Index suggests a slight improvement in global construction equipment organic growth for the second quarter of 2025 compared to the first quarter, yet it remains negative. This indicates that while there is some recovery, it is not robust enough to warrant a more optimistic rating.
Moreover, the market seems to have already priced in the anticipated improvement, which could limit further upside potential for Caterpillar’s stock. Additionally, there are concerns about the potential deterioration in U.S. non-residential construction demand and increased pricing competition, which could pose challenges in the latter half of the year. Given these uncertainties and the cautious outlook for the construction OEM sector, a Hold rating reflects a balanced view of the risks and opportunities facing Caterpillar.
Based on the recent corporate insider activity of 82 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CAT in relation to earlier this year.