Caterpillar (NYSE:CAT) Price Target Cut to $675.00 by Analysts at Morgan Stanley

Key Points

• Morgan Stanley cut Caterpillar’s price target from $915 to $675 while maintaining an “equal weight” rating, implying about 8.3% upside from the prior close.
• Analyst views remain broadly positive but mixed: Caterpillar has a “Moderate Buy” consensus, with 15 Buy ratings, 12 Holds, and an average target price of $927.08.
• Caterpillar reported quarterly EPS of $7.20, beating estimates, while revenue rose 17.3% year over year to $20.68 billion but slightly missed expectations. Shares fell to $623.49, pressured by concerns over valuation, tariffs, inventories, and slower backlog conversion.

Caterpillar (NYSE:CAT - Get Free Report) had its price target lowered by analysts at Morgan Stanley from $915.00 to $675.00 in a research note issued to investors on Friday, Benzinga reports. The firm presently has an "equal weight" rating on the industrial products company's stock. Morgan Stanley's price target would suggest a potential upside of 8.26% from the company's previous close.

A number of other brokerages have also weighed in on CAT. Freedom Broker raised Caterpillar from a "hold" rating to a "buy" rating and set a $980.00 target price for the company in a research report on Thursday, September 10th. Citigroup dropped their price target on shares of Caterpillar from $1,100.00 to $950.00 and set a "buy" rating for the company in a research report on Monday, October 12th. UBS Group cut their price objective on shares of Caterpillar from $925.00 to $750.00 and set a "neutral" rating for the company in a report on Monday. President Capital initiated coverage on Caterpillar in a research report on Friday, September 18th. They issued a "buy" rating and a $999.00 target price on the stock. Finally, Barclays lifted their price target on Caterpillar from $800.00 to $900.00 and gave the stock an "equal weight" rating in a research report on Thursday, August 6th. Fifteen equities research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $927.08.

Caterpillar Price Performance

Shares of Caterpillar stock traded down $23.91 during trading on Friday, hitting $623.49. 2,727,287 shares of the stock traded hands, compared to its average volume of 2,846,420. The firm's fifty day moving average is $787.07 and its 200-day moving average is $807.56. The stock has a market cap of $286.60 billion, a price-to-earnings ratio of 26.87, a PEG ratio of 1.22 and a beta of 1.58. Caterpillar has a 52 week low of $537.08 and a 52 week high of $1,073.46. The company has a quick ratio of 0.85, a current ratio of 1.37 and a debt-to-equity ratio of 1.65.

Caterpillar (NYSE:CAT - Get Free Report) last released its quarterly earnings data on Thursday, October 29th. The industrial products company reported $7.20 EPS for the quarter, topping the consensus estimate of $7.06 by $0.14. The firm had revenue of $20.68 billion for the quarter, compared to the consensus estimate of $20.76 billion. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%. The company's quarterly revenue was up 17.3% on a year-over-year basis. During the same quarter in the previous year, the business earned $4.95 earnings per share. Research analysts expect that Caterpillar will post 27.74 EPS for the current fiscal year.

Insider Buying and Selling at Caterpillar

In other news, CEO Joseph E. Creed sold 32,401 shares of Caterpillar stock in a transaction on Friday, August 28th. The stock was sold at an average price of $808.98, for a total value of $26,211,760.98. Following the transaction, the chief executive officer directly owned 34,555 shares in the company, valued at approximately $27,954,303.90. This trade represents a 48.39% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Insiders own 0.33% of the company's stock.

Institutional Trading of Caterpillar

Institutional investors have recently made changes to their positions in the business. BlackRock Inc. bought a new stake in shares of Caterpillar in the second quarter valued at approximately $40,457,153,000. State Street Corp raised its holdings in Caterpillar by 4.0% in the 2nd quarter. State Street Corp now owns 36,276,960 shares of the industrial products company's stock valued at $37,120,529,000 after acquiring an additional 1,396,356 shares in the last quarter. Bank of America Corp DE acquired a new position in Caterpillar in the 2nd quarter valued at $5,818,150,000. Bank of New York Mellon Corp bought a new stake in shares of Caterpillar during the 2nd quarter valued at $3,192,710,000. Finally, Legal & General Group Plc bought a new stake in shares of Caterpillar during the 2nd quarter valued at $2,783,451,000. Institutional investors and hedge funds own 70.98% of the company's stock.

Caterpillar News Roundup

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar reported adjusted earnings of $7.20 per share, ahead of the $7.06 consensus, while sales and revenue increased 17% year over year to $20.7 billion. Power-generation sales rose 30%, supported by data-center demand. Caterpillar Reports Third-Quarter 2026 Results
• Positive Sentiment: A record $78.1 billion backlog, with orders extending into 2029–2030, supports expectations for continued revenue growth and margin expansion as AI-related infrastructure projects are delivered. Caterpillar also returned $2 billion through dividends and share repurchases during the quarter. Caterpillar Q3 2026 Earnings Call Transcript
• Positive Sentiment: Truist reaffirmed its “buy” rating and set a $1,027 price target, implying substantial upside despite lowering its previous target from $1,100. Truist Caterpillar Rating
• Neutral Sentiment: Royal Bank of Canada reduced its price target from $897 to $722 and maintained a “sector perform” rating, signaling that the long-term outlook remains constructive but that near-term upside may be limited. RBC Caterpillar Rating
• Negative Sentiment: Revenue of $20.68 billion fell slightly short of expectations, and management maintained its annual growth outlook while forecasting only moderate fourth-quarter revenue growth. Investors had been positioned for a stronger forecast upgrade after the earnings beat. Caterpillar Sales Jump, But Wall Street Wanted More
• Negative Sentiment: Tariff-related costs, rising inventories and concerns about slower backlog conversion are adding pressure. With CAT trading at a premium valuation after a major rally, investors appear unwilling to overlook even modest execution or outlook disappointments. Caterpillar Tumbles as Tariff Costs and Inventories Overshadow Earnings

Caterpillar Company Profile

Caterpillar Inc is a manufacturer of construction, mining, and industrial equipment. Its product portfolio includes excavators, bulldozers, wheel loaders, motor graders, articulated trucks, and other machinery used in construction, infrastructure development, mining, quarrying, forestry, and related industries. The company also produces diesel and natural gas engines, industrial gas turbines, generator sets, and other power-generation and transportation equipment.

Caterpillar operates through businesses focused on construction industries, resource industries, and energy and transportation.

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