On April 24, BofA Securities boosted Caterpillar Inc.'s (CAT) price target to $930 from $825, maintaining a Buy rating on the company’s shares. According to analyst Michael Feniger, Caterpillar’s Power & Energy arm, which accounts for roughly 40% of revenues, is attracting substantial investor focus given its growth potential in the power sector, which includes engines and generators for data centers.
According to BofA Securities, there are indications that Caterpillar’s energy division may see growth in 2027. The firm stated that Caterpillar’s oil and gas portfolio might experience a comeback that year, albeit acknowledging some short-term risk to mining and excavation sales.
Meanwhile, on April 8, Freedom Broker boosted Caterpillar Inc.'s price objective to $710 from $700, retaining a Hold rating on the stock. Analyst Sergey Glinyanov stated that the firm remains favorable on Caterpillar Inc. going into 2026, adding that a recent conversation with management confirms the belief that the near-term environment may be more supportive than the market thinks.
Caterpillar Inc. is a leading global producer of heavy machinery, manufacturing equipment used in construction and mining, along with diesel and natural gas engines, industrial gas turbines, and diesel- electric locomotives.
While we acknowledge the risk and potential of CAT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame.
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