Erste Group Bank Reduces Earnings Estimates for Caterpillar

Key Points

• Erste Group Bank lowered Caterpillar’s FY2027 earnings forecast to $32.14 per share from $32.28 and maintained a “Hold” rating. The estimate remains above the broader consensus of $27.49 per share.
• Caterpillar’s latest quarterly results exceeded expectations, with EPS of $8.17 versus the $6.22 consensus and revenue of $20.54 billion versus $19.34 billion expected. Revenue increased 23.7% year over year.
• Despite the estimate reduction, analyst sentiment remains broadly positive: Caterpillar has a “Moderate Buy” consensus rating and an average price target of $982.92, while the stock was trading at $772.42, down 3.4%.

Caterpillar Inc. (NYSE:CAT - Free Report) - Analysts at Erste Group Bank reduced their FY2027 earnings estimates for Caterpillar in a research note issued to investors on Thursday, October 8th. Erste Group Bank analyst H. Engel now forecasts that the industrial products company will post earnings of $32.14 per share for the year, down from their previous estimate of $32.28. Erste Group Bank currently has a "Hold" rating on the stock. The consensus estimate for Caterpillar's current full-year earnings is $27.49 per share.

Caterpillar (NYSE:CAT - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $6.22 by $1.95. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%. The firm had revenue of $20.54 billion during the quarter, compared to analyst estimates of $19.34 billion. During the same quarter in the previous year, the business earned $4.72 earnings per share. Caterpillar's quarterly revenue was up 23.7% on a year-over-year basis.

Several other equities research analysts have also recently weighed in on CAT. Freedom Broker upgraded Caterpillar from a "hold" rating to a "buy" rating and set a $980.00 target price for the company in a report on Thursday, September 10th. Wall Street Zen upgraded Caterpillar from a "hold" rating to a "buy" rating in a research note on Saturday. UBS Group lifted their price objective on Caterpillar from $900.00 to $925.00 and gave the company a "neutral" rating in a report on Wednesday, August 5th. DA Davidson raised their target price on shares of Caterpillar from $845.00 to $882.00 and gave the company a "neutral" rating in a research report on Thursday, August 6th. Finally, Citigroup cut their target price on shares of Caterpillar from $1,100.00 to $950.00 and set a "buy" rating on the stock in a research report on Monday. Fifteen equities research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $982.92.

Caterpillar Trading Down 3.4%

CAT opened at $772.42 on Wednesday. The company has a quick ratio of 0.85, a current ratio of 1.37 and a debt-to-equity ratio of 1.65. The stock's fifty day moving average is $819.49 and its two-hundred day moving average is $855.64. The company has a market capitalization of $355.06 billion, a P/E ratio of 33.24, a PEG ratio of 1.38 and a beta of 1.58. Caterpillar has a 52 week low of $499.01 and a 52 week high of $1,073.46.

Insider Transactions at Caterpillar

In other Caterpillar news, CEO Joseph E. Creed sold 32,401 shares of the stock in a transaction on Friday, August 28th. The stock was sold at an average price of $808.98, for a total transaction of $26,211,760.98. Following the sale, the chief executive officer owned 34,555 shares of the company's stock, 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 Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 0.33% of the company's stock.

Institutional Investors Weigh In On Caterpillar

Hedge funds have recently made changes to their positions in the stock. BlackRock Inc. acquired a new position in shares of Caterpillar in the 2nd quarter valued at about $40,457,153,000. State Street Corp grew its holdings in Caterpillar by 4.0% during the second quarter. State Street Corp now owns 36,276,960 shares of the industrial products company's stock worth $37,120,529,000 after acquiring an additional 1,396,356 shares during the period. Bank of America Corp DE acquired a new stake in Caterpillar during the second quarter worth about $5,818,150,000. Diamant Asset Management Inc. grew its holdings in Caterpillar by 68,427.2% during the first quarter. Diamant Asset Management Inc. now owns 3,140,603 shares of the industrial products company's stock worth $2,224,992,000 after acquiring an additional 3,136,020 shares during the period. Finally, Invesco Ltd. raised its position in Caterpillar by 2.3% during the fourth quarter. Invesco Ltd. now owns 3,031,666 shares of the industrial products company's stock valued at $1,736,750,000 after acquiring an additional 68,770 shares in the last quarter. 70.98% of the stock is currently owned by hedge funds and other institutional investors.

Trending Headlines about Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar’s planned $1 billion U.S. investment in compact construction equipment could expand domestic production capacity and support longer-term growth. Caterpillar announces $1B US compact equipment investment
• Positive Sentiment: Investors continue to view CAT as a dividend-paying way to gain exposure to artificial-intelligence infrastructure, particularly through its power-generation equipment used in data-center projects. 3 Dividend Paying Stocks Offering AI Exposure
• Neutral Sentiment: Recent coverage highlights strong operating momentum: first-half 2026 revenue rose approximately 23%, helped by infrastructure and data-center demand. However, higher dealer inventories raise questions about whether future growth will depend on continued restocking. Caterpillar Can Earnings Keep Growing After Dealers Stop Restocking?
• Negative Sentiment: Analysts and investors are increasingly concerned that Caterpillar’s data-center power opportunity is concentrated in a single project category, making the growth outlook vulnerable if new projects slow or are delayed. CAT trades at roughly 30–34 times earnings, a sizable premium to the broader market, leaving less room for disappointment. What Could Derail Caterpillar Stock?
• Negative Sentiment: Caterpillar’s valuation is being challenged because a traditionally cyclical construction and mining-equipment maker is being priced more like a growth stock. Comparisons with Deere have also favored Deere in recent analyst narratives. Which Industrials Stock Do Analysts Like Better: Deere or Caterpillar?
• Negative Sentiment: Citi and Truist reduced their price targets, while CAT fell below a key technical support level after retreating from its June high near $1,070 to about $759. The target cuts and technical breakdown have reinforced bearish momentum. Caterpillar stock drops below key support as Citi and Truist slash target

About Caterpillar

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Its products are used in infrastructure development, construction, mining, energy production, transportation, agriculture, forestry, and other industrial applications.

The company markets equipment and related services through a worldwide network of independent dealers. Its operations are generally organized around Construction Industries, Resource Industries, and Energy & Transportation.

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