The Commerce Department adjusted the scope of the steel and aluminum tariffs on August 18 to include over 400 classes of metal parts and components and Jefferies noted that Caterpillar (CAT) is the first to quantify the impact of these new tariffs, but the firm expects other other heavy manufacturers will also be hit and face similar headwinds. The firm lowered Caterpillar estimates to reflect the increased costs, but sees continued support for additional cycle upside in 2026 and maintains a Buy rating and $500 price target on Caterpillar shares. Other heavy equipment makers include Oshkosh (OSK), Terex (TEX), Deere (DE), CNH Industrial (CNH) and Agco (AGCO).
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on CAT:
- Dell reports ‘beat and raise,’ Caterpillar sees big tariff impacts: Morning Buzz
- Caterpillar put volume heavy and directionally bearish
- Caterpillar estimates lowered at Morgan Stanley on additional tariff headwinds
- Morning Movers: Celsius jumps after PepsiCo agrees to increase stake
- Caterpillar price target lowered to $495 from $500 at Baird