Caterpillar (CAT) PT Raised to $502 at Bernstein SocGen Group

Bernstein SocGen Group analyst Chad Dillard raised the price target on Caterpillar (NYSE: CAT) to $502.00 (from $447.00) while maintaining a Market Perform rating.

The analyst commented: "Consensus long, but should work into 3Q. 1) Announcing higher tariff costs in August de-risked 3Q - a ~$1 EPS headwind; 2) Order growth to continue - +14% Y/Y implies a 1.1x B2B, driven by broadening construction activity and Power Gen demand (5GWs of projects announced since 2Q); 3) Dealer inventory destock to continue - seasonality suggests a $50M decline in 3Q, and another $600M in 4Q; 4) Equipment pricing improving - we forecast flat ME&T price (from -3% in 2Q), largely driven by Construction; and 5) Power Gen capacity additions should boost 2H EPS (we estimate a 20c tailwind in 3Q and 4Q). All in we expect CAT to beat 3Q by +2% and issue soft guidance that raises street estimates by +1%, setting up a strong exit rate into ‘26. Our EPS of $21.85 is +2% ahead of street. Raise our TP to $502 to reflect these changes."

You May Also Be Interested In

• Fiserv (FISV) PT Lowered to $60 at Freedom Broker
• Air T reports revenue jump but widens operating loss in Q1 fiscal 2027
• Intuitive Machines Inc. (LUNR) PT Lowered to $32 at Cantor Fitzgerald, Reaffirms Overweight Rating