DA Davidson Raises Caterpillar (CAT) Target Following Better-Than-Expected Quarter

With YTD returns of 53.9% as of May 5, Caterpillar Inc. (NYSE:CAT) is included among the 10 Best Performing Dividend Stocks So Far in 2026.

On May 4, DA Davidson raised its price recommendation on Caterpillar Inc. (NYSE:CAT) to $845 from $650. It reiterated a Neutral rating on the shares following the company’s better-than-expected Q1 results. The analyst said most key metrics came in well above expectations, while management also raised its outlook. According to the firm, Caterpillar is being increasingly driven by data center applications and is now targeting 3x growth in its large engine capacity by 2028, up from its previous 2x target.

On May 5, Argus raised its price goal on CAT to $990 from $820. It kept a Buy rating on the stock. The analyst said Caterpillar has recently benefited from strong growth in data centers, which is driving higher demand for its power generation products, including reciprocating engines, gas turbines, and solar microgrid systems. Argus also noted that Caterpillar has seen solid growth in its oil and gas business, along with increased demand for construction equipment used in building data centers. The firm expects demand in these areas to remain strong through 2026 and over the longer term.

Caterpillar Inc. (NYSE:CAT) manufactures construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Its business segments include Construction Industries, Resource Industries, and Power & Energy.

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