Barclays Updates Machinery Outlook, Boosts Caterpillar (CAT) Target

Caterpillar Inc. (NYSE:CAT) is included among the 14 Cheap DRIP Stocks to Buy Now.

On March 31, Barclays analyst Adam Seiden raised the firm’s price recommendation on Caterpillar Inc. (NYSE:CAT) to $700 from $625. It reiterated an Equal Weight rating on the shares. The firm updated its targets across machinery and construction names as part of its Q1 preview. It pointed out that rentals, small-cap cyclicals, and agriculture are dealing with higher input costs, added competition, and what it described as “fading recovery narratives.” The analyst said rising input costs stand out as a “bigger negative risk” for agriculture markets. At the same time, there is a growing chance of government-related support, especially with an election year shaping demand across several end markets.

Earlier in March, Reuters reported that Atlas Energy signed an agreement with Caterpillar to secure about $840 million worth of power-generation equipment through 2029. The move is meant to lock in manufacturing capacity as electricity demand in the US continues to rise. Atlas said the deal covers around 1.4 gigawatts of additional natural gas power generation capacity, with deliveries planned between 2027 and 2029. The equipment will include large-load reciprocating generator sets. This involves CG260-16 units for behind-the-meter installations, along with G3520 series units that can support both behind-the-meter and bridge-power applications.

Caterpillar Inc. (NYSE:CAT) manufactures construction and mining equipment, along with off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. The company operates through Construction Industries, Resource Industries, and Power & Energy segments.

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