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Investing.com - Bernstein SocGen Group has raised its price target on Caterpillar (NYSE:CAT) to $557.00 from $502.00 while maintaining a Market Perform rating, following the company’s strong third-quarter performance.
Caterpillar shares jumped 12% after reporting quarterly results that showed improvements in backlog and orders, driven primarily by growth in the power generation segment. The company’s backlog grew by $2.4 billion to $39.9 billion, implying $19.1 billion in orders, up 5% quarter-over-quarter.
Energy & Transportation retail sales grew 25%, with the power generation subsector increasing 33%. Bernstein noted that solar continues to see strong order activity as data centers consider distributed onsite power, with lead times extending for Caterpillar’s largest models.
In the Construction segment, pricing is expected to be flat in the fourth quarter, setting up for positive pricing in 2026, while retail sales improved to 7% growth from 2% previously. The Resource segment is expected to maintain negative pricing in the fourth quarter, though trending positive for 2026, with volumes growing 5%.
Tariffs presented an incremental negative impact of approximately $600 million in the third quarter, with the full-year impact raised by $25 million to $1.675 billion, which would require at least 2% price increases in 2026 to fully offset.
In other recent news, Caterpillar Inc. has reported impressive financial results for the third quarter of 2025, surpassing both earnings and revenue expectations. The company’s adjusted earnings per share stood at $4.95, significantly above the projected $4.55, while revenue reached a record $17.64 billion, exceeding the anticipated $16.76 billion. Following these results, BofA Securities raised its price target for Caterpillar from $594 to $650, maintaining a Buy rating on the stock. The increase in the price target was attributed to a notable inflection in retail sales. These developments have generated positive sentiment among investors, as reflected in the company’s stock performance.
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