Caterpillar (CAT) Price Target Raised by BofA as Turbine Demand Broadens
Caterpillar Inc. (NYSE:CAT) is included among the 16 Best Dividend Stocks with Rising Payouts.
On February 10, BofA raised its price recommendation on Caterpillar Inc. (NYSE:CAT) to $825 from $735. It reiterated a Buy rating on the stock. The firm said its recent checks show turbine demand is expanding beyond data centers, which should help ease concerns about overcapacity. The analyst also pointed to the “eyepopping growth” in Caterpillar’s power generation unit and noted that oil and gas demand rose 24% year over year, a trend investors may be overlooking.
Caterpillar is seeing benefits from AI growth in more than one way. Its construction equipment plays a key role in building data centers. At the same time, its Power & Energy segment is gaining momentum, as data centers rely on its turbines and large engines to ensure stable and backup power. The company, which marks its 100th year in 2025, reported record revenue of $67.6 billion, up 4%. The increase was driven mainly by stronger equipment sales. Caterpillar operates across three segments, and its Power & Energy unit stood out. Sales in that segment reached $9.4 billion in the fourth quarter, up 23% from the same period last year. The business includes products such as natural gas generators and battery storage systems.
One area of weakness was profitability. Full-year earnings per share declined 14.6% to $18.81. The drop was largely tied to higher incremental costs, including the impact of tariffs. Even so, the outlook remains supported by strong demand. Caterpillar reported a record backlog of $51.2 billion in the fourth quarter. On January 28, the company also announced an agreement with American Intelligence and Power. Under the deal, Caterpillar will supply natural gas generators and battery storage to deliver 2 gigawatts of power to AIP’s Monarch Compute Campus in West Virginia by 2027.
Caterpillar Inc. (NYSE:CAT) manufactures construction and mining equipment, along with off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. The company operates through its Construction Industries, Resource Industries, and Power & Energy segments. It also offers financing and related services through its Financial Products division.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Microsoft (MSFT.US) 365 services experience second major outage this year, affecting multiple government agencies and enterprises worldwide
Despite a "partial recovery," the latest Microsoft service outage continued into Asia-Pacific business hours.
Nvidia (NVDA.US) New CEO Candidates and Market Predictions: Trump Nominates Cook as Successor
As the successor remains uncertain, external voices have already begun to "make choices" for Nvidia.
Safe haven halo fails? US Treasury sell-off returns, Wall Street just breathed a sigh of relief and is startled again
Just as global bond investors began to believe that the worst phase of this year's sell-off had passed, the surge in U.S. Treasury yields has forced them to reassess that judgment.
Before the Jensen Huang scandal broke out, the Quant King precisely cleared out Nvidia!
The latest 13F filing shows that quantitative giant Renaissance Technologies almost completely sold off its holdings in Nvidia (reduced by 99.7%), Meta (reduced by 99.9%), as well as other tech giants like Apple and Amazon in the third quarter, and significantly reduced its position in Palantir. At the same time, it heavily increased its holdings in Micron Technology (up by 618.7%), AMD, and SanDisk, as well as other storage and chip stocks.
Crypto prices
More
