"Morgan Stanley's reversal hinges on Caterpillar's record backlog and the staying power of its data center power generation business. JPMorgan stated Caterpillar's earnings should more than double by 2030, arguing the stock's 'high-growth valuation here to stay' because management's margin outlook remains conservative."
"Caterpillar posted revenue of $17.41 billion, up 22% year-over-year (YoY), and adjusted earnings per share (EPS) of $5.54, well above the $4.64 consensus. Investors revisiting Caterpillar's earnings track record will note its pattern of beats and capital discipline."
Morgan Stanley increased its price target on Caterpillar to $915 from $430, upgrading the stock to Equal Weight. JPMorgan Chase raised its target to $1,125 from $860, maintaining an Overweight rating. Both firms cite strong market execution, a robust backlog, and demand growth as key factors. Caterpillar's Q1 2026 results showed revenue of $17.41 billion, a 22% YoY increase, and adjusted EPS of $5.54. The company returned $5.7 billion to shareholders, including $5 billion in buybacks, reflecting its capital discipline and earnings track record.
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