BofA Securities analyst Michael Feniger raised the price target on Caterpillar (NYSE: CAT) to $989.00 (from $930.00) while maintaining a Buy rating.

The analyst comments "CAT shares finished +10% (SPX +1%) breaking out to new highs on a set of results that surpassed the bulls: adj EPS of $5.54 (20% ahead of cons), FY tariff costs lowered ($2.2- 2.4bn vs $2.6bn), record backlog of $63bn (+79% YoY), announced plans to expand large engine capacity (3x vs 2x prior) and raised 2030 growth targets (6-9% CAGR vs 5-7%) only 6 months after its Investor Day. What sticks out to us? CAT is not even ‘firing on all cylinders’: P&E margin down 160bps YoY, RI margin down 700bps YoY, and we are only 1 quarter into an industrial economy trying to recover from a multi-year downturn."