Representing 5.97% of Bill Gates’s stock portfolio, Caterpillar Inc. (NYSE:CAT) is one of his top top 15 stock picks.
On November 3, 2025, DA Davidson increased its price target on Caterpillar Inc. from $408 to $569, while keeping a “Neutral” rating, The Fly reported.
The investment firm’s raised target reflects the company’s strong Q3 results. The firm’s optimism stems from management’s upbeat tone, which is driven by strong demand in the Energy & Transportation (E&T) segment, particularly from AI-driven data center expansion. DA Davidson noted that margins are expected to come in at the top of Caterpillar Inc.’s guidance range. This excludes any tariff-related impact.
Earlier, on October 29, 2025, Caterpillar Inc. reported an earnings beat, sending its shares soaring by 12%. Particularly, its E&T segment delivered a 17% sales growth to $7.2 billion, thanks to rising power-generation demand from data centers and government-backed energy projects. The company surpassed analysts’ earnings forecasts with adjusted earnings per share of $4.95, compared to the $4.52 consensus.
Looking ahead, Caterpillar Inc. expects tariff headwinds of up to $1.75 billion this year. Nevertheless, its construction and resource segments are expected to remain solid contributors to growth, according to Reuters.
Caterpillar Inc. is a global manufacturer of construction, mining, and energy equipment and engines.
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