Oppenheimer analyst Noah Kaye reiterated a Perform rating and {REMOVEPT} price target on Caterpillar (NYSE: CAT).

The analyst commented: "CAT shares closed lower Wednesday on a light 3Q print and softening end markets contributing to a weaker 4Q outlook. From a positioning standpoint, the dichotomy of data center growth (<10% of CAT sales) and Construction and Mining softness (>55% of CAT sales) has helped support the shares beyond what historical cycle dynamics would dictate. Our view is that we are closer to peak than trough in many of CAT's end markets, with the diversity of its end markets helping to dampen the severity of the downturn. We continue to believe the setup for 2025 is dependent on CAT's ability to align dealer inventories while managing production to limit the impact of negative pricing on decremental margins. We maintain our neutral stance on shares."

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Shares of Caterpillar closed at $379.24 yesterday.