Bank of America (BofA) has adjusted its outlook on Caterpillar (CAT, Financial), revising the price target from $414 to $335 while maintaining a Buy rating. The bank anticipates tough conditions for companies in the Machinery, Engineering & Construction, and Waste sectors as earnings reports approach. BofA suggests that the situation presents a "lose-lose" scenario where businesses might either lower their guidance amid prevailing uncertainties or risk seeming disconnected from the current market realities.
As part of a broader strategy, BofA is reducing price targets across the sector and is shifting its focus towards service-oriented areas such as aggregates, rentals, and waste management, rather than concentrating on original equipment manufacturing. This strategic pivot reflects the firm's anticipation of where value might be more robust amid forthcoming challenges.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 21 analysts, the average target price for Caterpillar Inc (CAT, Financial) is $357.80 with a high estimate of $427.41 and a low estimate of $243.00. The average target implies an upside of 25.60% from the current price of $284.87. More detailed estimate data can be found on the Caterpillar Inc (CAT) Forecast page.
Based on the consensus recommendation from 28 brokerage firms, Caterpillar Inc's (CAT, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Caterpillar Inc (CAT, Financial) in one year is $297.15, suggesting a upside of 4.31% from the current price of $284.87. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Caterpillar Inc (CAT) Summary page.
