Street View: Caterpillar's robust backlog offsets tougher macro backdrop

Caterpillar

01/05/2026 12:48

** Construction equipment company Caterpillar CAT.N raised its annual and long-term revenue forecasts, citing a surge in AI data center demand that has fueled record orders for its power generation and backup equipment

** Median PT of 30 brokerages covering the stock is $832 - LSEG-compiled data

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** J.P. Morgan ("overweight," PT: $1,125) says a step up in data center spending has boosted order momentum and long-term visibility, with a surge in backlogs

** Morgan Stanley ("equal-weight," PT: $915) says, "CAT's execution in the face of ongoing macro headwinds and its record backlog continue to support attractive longer term growth"

** Daiwa Capital Markets ("neutral," PT: $900) says CAT's margins could face pressure as capacity ramps up even as strong backlog supports near-term growth

** Jefferies ("buy," PT: $1,045) sees CAT's 2030 sales targets as 'conservative,' with further upside seen from upcoming mining and gas compression cycles

 (Reporting by Kanishka Ajmera in Bengaluru)

 ((Kanishka.Ajmera@thomsonreuters.com))