-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
Following Q1 results, we lift our 12-month target to $1,050 from $700, valuing shares at 36x our 2027 EPS outlook of $29.21 (lifted from $27.57; 2026 EPS forecast revised to $24.31 from $22.62), a premium to CAT's historical multiple range. With broadening growth across CAT's machinery portfolio and better than anticipated management of tariff impacts ($2.2 to $2.4 billion impact guided, down from $2.6 billion initial outlook), we view the multiple as more justified. Order backlog expansion stood out to us in Q1, hitting a record $63 billion following a $12 billion sequential jump. Supportive commodity prices and dealer inventory restocking contributed to cyclical strength in orders for construction and mining machinery, with these better-than-expected trends underpinning our upgraded earnings forecasts for 2026 and 2027. Q1 further validated CAT's Power & Energy business as a core growth engine for the company, with the 2030 sales target for power generation being lifted to more than 3x its 2024 baseline.