Caterpillar price target lowered to $480 from $493 at Oppenheimer

Oppenheimer lowered the firm’s price target on Caterpillar (CAT) to $480 from $493 and keeps an Outperform rating on the shares after the company provided an updated tariff impact outlook, lifting the upper end of its outlook by $300M and indicating FY25 operating profit now near the bottom end of its investor day target range. The bulk of the update accounts for changes in the Section 232 steel and aluminum tariffs announced post-earnings, as well reciprocal rates with India. A blow to the forward earnings outlook, sentiment has been moderated post-Q2 results by the still unclear mitigation strategy, Oppenheimer adds. While the firm believes cycle transition will overpower tariff-sentiment, volume growth is the clear next catalyst.