RBC Capital initiates Caterpillar stock with Sector Perform rating

Published 21/10/2025, 22:52
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Investing.com - RBC Capital initiated coverage on Caterpillar (NYSE:CAT) with a Sector Perform rating and set a price target of $560.00. The stock currently trades near its 52-week high of $544.99, having delivered an impressive 86% return over the past six months. According to InvestingPro analysis, the stock appears to be trading above its Fair Value.

The research firm believes Caterpillar is well-positioned in what it describes as a "generally mid-cycle operating backdrop" for the heavy equipment manufacturer.

RBC Capital highlighted that Caterpillar’s exposure to the data center market provides "an interesting growth angle" for the company.

Despite these positive factors, the firm stated that current market expectations are "appropriately reflected in the valuation today."

RBC Capital indicated it would "remain on the sidelines until a more attractive entry point" emerges for the stock.

In other recent news, Caterpillar Inc. has announced several key developments that may interest investors. The company revealed it will invest up to $5 million in workforce training initiatives across Indiana, as part of a broader $100 million workforce development pledge. This investment is tied to the expansion of its Lafayette engine facility, which is undergoing a $725 million capital expansion to boost production capacity. Additionally, Caterpillar has announced an agreement to acquire Australian mining software firm RPMGlobal Holdings Limited. This acquisition aims to enhance Caterpillar’s technological capabilities in the mining sector, particularly in asset management and fleet management.

Analyst firms have also made notable updates on Caterpillar’s stock. BofA Securities raised its price target to $594, maintaining a Buy rating, due to growth opportunities in the small turbine market. Meanwhile, Bernstein raised its price target to $502, citing factors such as the company’s strategy to mitigate tariff costs and expectations of continued order growth. These recent developments highlight Caterpillar’s strategic moves in workforce development, technological enhancement, and market positioning.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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