Daiwa Securities Group Issues Positive Forecast for Caterpillar (NYSE:CAT) Stock Price

Key Points

• Daiwa Securities raised its price target on Caterpillar to $900 from $790 while keeping a "neutral" rating, amid broader sell‑side momentum that leaves the consensus rating at "Moderate Buy" with a $849.27 average price target.
• Strong Q1 beat: Caterpillar reported adj. EPS $5.54 (vs. $4.65 est.) and $17.42B revenue (+22% y/y), deployed $5.7B to buybacks/dividends, and cited AI/data‑center–driven power demand and a record backlog that lifted its outlook and helped push the stock to all‑time highs.
• Risks remain: Company insiders sold roughly 125,950 shares (~$88.6M) last quarter and Caterpillar expects significant 2026 tariff costs, which could pressure margins despite strong demand and high institutional ownership (~71%).

Caterpillar (NYSE:CAT - Get Free Report) had its price target hoisted by equities researchers at Daiwa Securities Group from $790.00 to $900.00 in a research report issued to clients and investors on Friday,MarketScreener reports. The brokerage currently has a "neutral" rating on the industrial products company's stock. Daiwa Securities Group's price objective indicates a potential upside of 0.16% from the company's previous close.

Several other equities analysts also recently weighed in on CAT. Wolfe Research lifted their target price on shares of Caterpillar from $670.00 to $750.00 and gave the stock an "outperform" rating in a research note on Tuesday, March 31st. Citigroup raised their price objective on shares of Caterpillar from $905.00 to $1,020.00 and gave the stock a "buy" rating in a report on Friday. UBS Group reissued a "neutral" rating and set a $677.00 target price on shares of Caterpillar in a report on Monday, February 2nd. Truist Financial increased their target price on Caterpillar from $786.00 to $920.00 and gave the stock a "buy" rating in a research report on Monday, April 20th. Finally, JPMorgan Chase & Co. lifted their price target on Caterpillar from $765.00 to $860.00 and gave the company an "overweight" rating in a research report on Wednesday, March 4th. Sixteen research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $849.27.

Caterpillar Stock Performance

Shares of CAT opened at $898.55 on Friday. Caterpillar has a 1 year low of $318.11 and a 1 year high of $896.98. The company has a debt-to-equity ratio of 1.44, a current ratio of 1.44 and a quick ratio of 0.94. The stock's fifty day moving average price is $746.86 and its two-hundred day moving average price is $655.04. The firm has a market cap of $418.08 billion, a PE ratio of 47.80, a PEG ratio of 1.87 and a beta of 1.52.

Caterpillar (NYSE:CAT - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The industrial products company reported $5.54 earnings per share for the quarter, topping the consensus estimate of $4.65 by $0.89. Caterpillar had a return on equity of 45.76% and a net margin of 13.14%.The company had revenue of $17.42 billion during the quarter, compared to the consensus estimate of $16.53 billion. During the same quarter in the prior year, the company earned $4.25 EPS. The firm's quarterly revenue was up 22.2% compared to the same quarter last year. On average, equities research analysts forecast that Caterpillar will post 22.89 EPS for the current year.

Insider Activity

In other news, insider Lange Bob De sold 22,656 shares of the business's stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $720.11, for a total transaction of $16,314,812.16. Following the completion of the transaction, the insider owned 79,953 shares of the company's stock, valued at approximately $57,574,954.83. The trade was a 22.08% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Anthony D. Fassino sold 7,891 shares of the business's stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $776.90, for a total transaction of $6,130,517.90. Following the completion of the transaction, the insider directly owned 46,643 shares of the company's stock, valued at approximately $36,236,946.70. This represents a 14.47% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 125,950 shares of company stock worth $88,577,390. Company insiders own 0.33% of the company's stock.

Institutional Investors Weigh In On Caterpillar

Several hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its holdings in shares of Caterpillar by 1.0% during the 4th quarter. Vanguard Group Inc. now owns 46,385,185 shares of the industrial products company's stock valued at $26,572,681,000 after buying an additional 442,164 shares in the last quarter. State Street Corp boosted its stake in Caterpillar by 1.1% in the fourth quarter. State Street Corp now owns 35,388,550 shares of the industrial products company's stock worth $20,273,039,000 after buying an additional 385,204 shares in the last quarter. Geode Capital Management LLC boosted its stake in Caterpillar by 0.9% in the fourth quarter. Geode Capital Management LLC now owns 10,610,182 shares of the industrial products company's stock worth $6,072,572,000 after buying an additional 94,524 shares in the last quarter. Fisher Asset Management LLC grew its position in Caterpillar by 0.6% during the fourth quarter. Fisher Asset Management LLC now owns 9,493,266 shares of the industrial products company's stock valued at $5,438,408,000 after acquiring an additional 54,069 shares during the last quarter. Finally, Bank of America Corp DE raised its stake in shares of Caterpillar by 16.0% during the fourth quarter. Bank of America Corp DE now owns 6,738,802 shares of the industrial products company's stock worth $3,860,457,000 after acquiring an additional 928,974 shares in the last quarter. Institutional investors own 70.98% of the company's stock.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Q1 beat and raise — Caterpillar reported stronger-than-expected Q1 results (adj. EPS $5.54; revenue $17.4B, +22% y/y), deployed $5.7B to buybacks/dividends, and lifted its annual/long-term revenue outlook, giving investors confidence in near-term growth and cash returns. Caterpillar Reports First-Quarter 2026 Results
• Positive Sentiment: AI-driven power demand — Management and reporters highlight a boom in demand for power and energy equipment tied to AI/data-center buildouts, which is expanding Caterpillar’s addressable market for generators and power systems and underpins the raised outlook. Caterpillar expects AI-driven demand for power, construction to fuel growth
• Positive Sentiment: Record backlog and sector leadership — Reports note a record backlog in power and construction segments, helping drive the stock to all-time highs as investors price in sustained revenue visibility. Caterpillar stock jumps on record backlog...
• Positive Sentiment: New multi-year power deal — A framework agreement with ProPetro’s PROPWR to supply up to 2.1 GW of power capacity through 2031/2032 expands recurring power equipment demand and strengthens exposure to data-center and industrial power projects. Caterpillar Taps PROPWR And Data Centers For New Power Growth
• Positive Sentiment: Analyst upgrade — Baird analyst Mig Dobre made CAT a fresh bullish pick and raised his price target to $1,165 (Street-high), adding momentum from the sell-side that can attract further buyer interest. Caterpillar Stock Can Rise Another 30%
• Neutral Sentiment: Market and ETF flows — ETFs and Dow-related flows have amplified CAT’s move after the earnings surprise, raising liquidity and volatility around the stock. ETFs tied to Caterpillar jump...
• Neutral Sentiment: Investor events — Company announced a virtual annual shareholder meeting for June 10; routine corporate governance item with limited near-term price impact. Caterpillar Announces Virtual 2026 Shareholder Meeting
• Negative Sentiment: Tariff pressure — Multiple reports note Caterpillar expects significant tariff costs in 2026; higher input/transport tariffs could weigh on margins and offset some benefits from pricing and volume. Caterpillar expecting significant tariff costs again for 2026

About Caterpillar

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.

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