Caterpillar (NYSE:CAT) Stock Price Expected to Rise, Bank of America Analyst Says

Caterpillar (NYSE:CAT) had its target price lifted by analysts at Bank of America from $650.00 to $708.00 in a research note issued on Wednesday,MarketScreener reports. The firm presently has a “buy” rating on the industrial products company’s stock. Bank of America‘s price target would indicate a potential upside of 9.42% from the company’s current price.

A number of other equities research analysts also recently weighed in on the company. Royal Bank Of Canada began coverage on Caterpillar in a research report on Wednesday, October 22nd. They set a “sector perform” rating and a $560.00 target price on the stock. Raymond James Financial reissued a “market perform” rating on shares of Caterpillar in a report on Wednesday, January 7th. Erste Group Bank upgraded Caterpillar from a “hold” rating to a “buy” rating in a research note on Friday, October 3rd. Morgan Stanley raised their target price on Caterpillar from $380.00 to $395.00 and gave the stock an “underweight” rating in a research report on Wednesday, December 10th. Finally, Wolfe Research boosted their price target on shares of Caterpillar from $470.00 to $670.00 and gave the company an “outperform” rating in a report on Friday, January 2nd. Three equities research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Caterpillar currently has an average rating of “Moderate Buy” and a consensus price target of $623.10.

Caterpillar Trading Up 1.3%

Shares of CAT stock opened at $647.05 on Wednesday. The firm has a market capitalization of $302.81 billion, a P/E ratio of 33.22, a price-to-earnings-growth ratio of 2.47 and a beta of 1.57. Caterpillar has a 1 year low of $267.30 and a 1 year high of $652.36. The firm’s fifty day simple moving average is $585.21 and its 200 day simple moving average is $500.31. The company has a current ratio of 1.38, a quick ratio of 0.86 and a debt-to-equity ratio of 1.34.

Caterpillar (NYSE:CAT) last posted its quarterly earnings results on Monday, November 3rd. The industrial products company reported $4.95 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.52 by $0.43. Caterpillar had a net margin of 14.34% and a return on equity of 47.16%. The company had revenue of $17.64 billion for the quarter, compared to analyst estimates of $16.72 billion. During the same period last year, the business posted $5.17 EPS. The business’s quarterly revenue was up 9.5% on a year-over-year basis. As a group, sell-side analysts predict that Caterpillar will post 19.86 EPS for the current year.

Insiders Place Their Bets

In other Caterpillar news, insider Jason Kaiser sold 10,707 shares of the company’s stock in a transaction dated Tuesday, November 11th. The shares were sold at an average price of $563.60, for a total transaction of $6,034,465.20. Following the sale, the insider directly owned 8,649 shares of the company’s stock, valued at approximately $4,874,576.40. This represents a 55.32% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Anthony D. Fassino sold 8,184 shares of Caterpillar stock in a transaction that occurred on Monday, November 10th. The shares were sold at an average price of $570.18, for a total transaction of $4,666,353.12. Following the completion of the transaction, the insider owned 41,512 shares of the company’s stock, valued at $23,669,312.16. This trade represents a 16.47% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 54,729 shares of company stock worth $31,084,308 in the last quarter. 0.33% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Caterpillar

A number of large investors have recently bought and sold shares of the business. Norges Bank acquired a new position in shares of Caterpillar in the 2nd quarter valued at $2,165,899,000. Groupe la Francaise increased its holdings in Caterpillar by 82.0% in the second quarter. Groupe la Francaise now owns 27,246 shares of the industrial products company’s stock valued at $10,820,000 after purchasing an additional 12,278 shares during the last quarter. Trivium Point Advisory LLC lifted its stake in Caterpillar by 132.9% in the second quarter. Trivium Point Advisory LLC now owns 1,926 shares of the industrial products company’s stock valued at $748,000 after buying an additional 1,099 shares during the period. Union Bancaire Privee UBP SA boosted its holdings in Caterpillar by 155.9% during the third quarter. Union Bancaire Privee UBP SA now owns 47,231 shares of the industrial products company’s stock worth $21,014,000 after buying an additional 28,773 shares during the last quarter. Finally, Palmer Knight Co acquired a new position in shares of Caterpillar during the 2nd quarter worth about $5,884,000. 70.98% of the stock is currently owned by institutional investors.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Bank of America raised its price target to $708 and kept a “buy” rating, signaling analyst confidence and implying upside from current levels. Article Title
• Positive Sentiment: JPMorgan raised its price target to $740 and reiterated an “overweight” rating, providing further institutional endorsement that supports upward price pressure. Article Title
• Positive Sentiment: Reports note CAT’s market value topped $300 billion amid an AI-related rally, which can attract momentum/chase buying and raises visibility among tech-focused funds. Article Title
• Positive Sentiment: Caterpillar announced a partnership with NVIDIA to develop foundations for autonomous systems — a strategic move toward higher-margin, tech-enabled equipment and a growth narrative beyond traditional heavy-equipment cycles. Article Title
• Positive Sentiment: Coverage highlighting CAT’s ~30% payout ratio argues the dividend is sustainable through downturns, which supports income-focused investor demand. Article Title
• Neutral Sentiment: Caterpillar set Jan. 29 for its Q4 and full-year 2025 results release — a scheduled catalyst that could move the stock depending on guidance and results versus expectations. Article Title
• Neutral Sentiment: Leadership transition: Tony Fassino will retire May 31 and Rod Shurman will take over Construction Industries on Feb. 1. The internal successor reduces execution risk, so this reads as orderly rather than disruptive. Article Title
• Neutral Sentiment: Third-party bullish write-ups summarize upside cases (valuation, durable franchise, AI/automation exposure) — these can reinforce momentum but are not primary catalysts on their own. Article Title

Caterpillar Company Profile

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and locomotives. The company’s product portfolio includes earthmoving machines such as excavators, bulldozers, wheel loaders and off‑highway trucks, as well as a range of power generation products including generator sets and power systems for industrial and commercial use. Caterpillar serves customers across heavy construction, mining, energy, transportation and related industries with both equipment and integrated technology solutions.

In addition to manufacturing, Caterpillar provides a broad range of aftermarket parts and support services, including maintenance, repair, remanufacturing and fleet management tools.