Caterpillar price target raised to $708 from $650 at BofA

BofA analyst Michael Feniger raised the firm’s price target on Caterpillar (CAT) to $708 from $650 and keeps a Buy rating on the shares as part of the firm’s machinery, engineering and construction and waste 2026 outlook. Most of the analyst’s coverage saw a multiple re-rating to the “recovery valuation” phase as demand bottomed out and EPS troughed, but the next leg of outperformance requires a baton pass from multiple to EPS growth and “not everyone will participate,” the analyst tells investors.