Caterpillar stock price target raised to $513 by Oppenheimer on data center growth

Investing.com - Oppenheimer raised its price target on Caterpillar (NYSE:CAT) to $513.00 from $480.00 on Monday, while maintaining an Outperform rating on the heavy equipment manufacturer’s stock. The company, currently trading at $465.76 with a market capitalization of $218.2 billion, has demonstrated strong financial performance with revenues of $63.14 billion in the last twelve months.

The research firm cited two distinct catalysts that have helped propel the construction space, where Caterpillar is a major player. First, Oracle’s fiscal first-quarter 2026 earnings report and OpenAI agreement on September 9 alleviated concerns about data center velocity.

Second, the recent Federal Reserve rate cut and indications of a rate-cutting cycle are providing support for the construction sector, according to Oppenheimer’s analysis.

The investment firm reiterated Caterpillar as its "top pick" amid what it views as bottoming construction data across the industry.

Oppenheimer believes the industry rotation into construction stocks is still in its early stages, suggesting potential for further upside in Caterpillar shares.

In other recent news, Caterpillar has updated its projections for the financial impact of tariffs, estimating an increase to $500-$600 million for the third quarter and $1.5-$1.8 billion for 2025. This revision has prompted several analyst firms to adjust their price targets for the company. BofA Securities raised its price target for Caterpillar to $517, citing the potential of its subsidiary, Solar Turbines. Meanwhile, JPMorgan lowered its target to $505 due to concerns over new tariff guidelines affecting steel and aluminum. Oppenheimer also reduced its target to $480, reflecting the updated tariff impact outlook. Bernstein maintained its price target at $447 despite the increased tariff cost expectations. These adjustments highlight the ongoing challenges Caterpillar faces in navigating tariff-related expenses.

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