RBC starts coverage on Caterpillar, Deere and United Rentals

Published 22/10/2025, 14:18
© Reuters.

Investing.com -- RBC Capital Markets began coverage on Caterpillar, Deere and United Rentals.

The brokerage initiated Caterpillar at Sector Perform with a $560 price target, saying the heavy equipment maker is well placed in a mid-cycle environment, supported by growing data center construction that is lifting demand for its power generation business.

RBC said the stock’s valuation already reflects these growth prospects.

Deere was started at Outperform with a $542 target. RBC said the world’s largest farm equipment maker is leading the shift toward precision agriculture and digital farming tools, which could make its business less tied to commodity swings.

The bank expects sentiment and earnings to recover through 2026 after what it views as a cycle trough in 2025.

United Rentals was also initiated at Outperform with a $1152 price target. RBC called the company a long-term winner as rental penetration rises and infrastructure spending picks up.

It added that United Rentals’ scale positions it to keep consolidating smaller peers and benefit from megaproject trends such as data center expansion.

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