Wells Fargo Sees Caterpillar (CAT) Benefiting From Data Center and Energy Demand

Caterpillar Inc. (NYSE:CAT) is included among the Top 10 Blue Chip Stocks with Growing Dividends.

On June 23, Wells Fargo raised its price recommendation on Caterpillar Inc. (NYSE:CAT) to $1,155 from $1,050. It reiterated an Overweight rating on the shares. In a research note, the firm said its checks across the data center and oil and gas markets indicate that lead times for Caterpillar’s prime reciprocating engines and Solar Turbines now extend into 2029. Wells Fargo also expects the recovery in U.S. non-residential construction to accelerate sooner than previously anticipated.

Earlier, on June 2, UBS raised its price goal on Caterpillar to $900 from $677. It maintained a Neutral rating on the stock. Analyst Steven Fisher said Caterpillar is well-positioned to benefit from strong demand in prime power generation, construction, mining, and oil and gas markets. According to the firm, these trends should support earnings growth through the 2027–2029 period. UBS added that much of this positive outlook may already be reflected in the stock price. Following a strong first-quarter earnings beat, a significantly larger backlog, and sharply higher consensus earnings estimates, the firm believes the potential for further material positive surprises is more limited.

Caterpillar Inc. (NYSE:CAT) manufactures construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives.

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