Argus Lifts PT on Caterpillar Inc. (CAT), Expects Strong Demand

Caterpillar Inc. (NYSE:CAT) is one of the top “blue chip” stocks that were suddenly on fire in April. On May 5, Argus lifted the price target on Caterpillar Inc. (NYSE:CAT) to $990 from $820, reaffirming a Buy rating on the shares. The firm told investors in a research note that the company has recently seen success from solid data center growth, which is raising demand for its power generation products. This includes gas turbines, reciprocating engines, and solar microgrid systems. It added that Caterpillar Inc. (NYSE:CAT) has also seen solid growth in its oil & gas business, along with its construction equipment used to build data centers. Argus anticipates the strong demand to continue in these growth areas in 2026 and the foreseeable future.

Caterpillar Inc. (NYSE:CAT) also received a rating update from DA Davidson on May 4, with the firm lifting the price target on the stock to $845 from $650 and maintaining a Neutral rating on the shares. The rating update came after the company reported better-than-expected fiscal Q1 results, with the firm telling investors in a research note that most of the key numbers handily surpassed expectations. The management’s outlook was raised as the company is increasingly being driven by data center applications, now targeting 3x growth in its large engine capacity by 2028, up from 2x prior, according to the firm.

Caterpillar Inc. (NYSE:CAT) is involved in the business of industrial gas turbines, manufacturing construction and mining equipment, off-highway diesel and natural gas engines, and diesel-electric locomotives. The company’s operations are divided into the following segments: Construction Industries, Resource Industries, Energy and Transportation, Financial Products, and All Other.

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