In a report released yesterday, Michael Feniger from Bank of America Securities reiterated a Buy rating on Caterpillar (CAT – Research Report), with a price target of $335.00.
Michael Feniger has given his Buy rating due to a combination of factors that highlight Caterpillar’s resilience and strategic positioning. Despite a softer Q1 performance with adjusted EPS down 24% year-over-year, the results were largely in line with expectations, and the company demonstrated strength in other areas. Notably, Caterpillar’s backlog reached a record $35 billion, indicating strong future demand, and retail sales showed positive growth, suggesting effective merchandising strategies.
Additionally, while tariffs pose a challenge, Caterpillar has provided some clarity on their cost impact, which helps mitigate uncertainty. The company’s diversified end market exposure, including power generation, China, and mining, offers a buffer against cyclical and tariff-related vulnerabilities. These factors, combined with a maintained price objective of $335, underpin Feniger’s confidence in Caterpillar’s ability to navigate current challenges and support the Buy rating.
Based on the recent corporate insider activity of 83 insiders, corporate insider sentiment is neutral on the stock.