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Caterpillar upgraded to Buy from Hold at Melius Research

Melius Research upgraded Caterpillar (CAT) to Buy from Hold with a $500 price target The firm upgraded the shares after increasing 2027 estimates “materially” to reflect an expected datacenter driven capacity increase in engines. Caterpillar’s role in the “power explosion” surrounding the artificial intelligence buildout is bigger than Melius thought a few months ago, the analyst tells investors in a research note. The firm says the company’s opportunity includes some baseload power and more value-added solutions in a strained grid.

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