Citigroup lifts Caterpillar PT on strong power demand

Caterpillar

09/03/2026 12:20

** Citigroup raises price target on construction and mining equipment manufacturer Caterpillar CAT.N to $785 from $760, reiterates "buy" rating

** New PT represents upside of 15.3% to stock's last close

** Brokerage expects double-digit growth in power-generation revenue, driven by strong data center backup and prime power demand, supported by ongoing capacity expansion that is set to ramp through 2030

** Expects CAT’s machinery, power & energy (MP&E) sales to rise by the high single digits, supported by a record ~$51  billion backlog in Q4 2025 and steady demand across construction, mining and power

** However, sees some choppiness ahead for CAT's margins due to tariff impacts

** CAT shares down 1.2% premarket

** Median PT of 30 brokerages covering the stock is $700 - data compiled by LSEG

** As of last close, CAT up 18.9% YTD

 (Reporting by Megavarshini G. Somasundaram in Bengaluru)

 ((Megavarshini.SomasundaramGnanasundari@thomsonreuters.com))