BofA Raises Caterpillar Price Target to $825 on Broadening Turbine Demand
Bank of America boosted Caterpillar’s price target to $825 from $735, citing turbine demand outside data centers and 24% YOY oil and gas growth. Logged record $67.6B revenue (+4%), Q4 Power & Energy sales of $9.4B (+23%), a $51.2B backlog and full-year EPS down 14.6% to $18.81 on higher costs.
1. BofA Price Target Increase
On February 10, Bank of America raised its price target on Caterpillar to $825 from $735 and reiterated a Buy rating, highlighting expanding turbine demand outside data centers and a 24% year-over-year increase in oil and gas demand.
2. Power & Energy Segment Growth
Caterpillar’s Power & Energy unit recorded fourth-quarter sales of $9.4 billion, up 23% year-over-year, driven by strong demand for natural gas generators and battery storage systems that support data center power stability and backup.
3. Financial Results and Backlog
The company reported record annual revenue of $67.6 billion, a 4% increase driven by stronger equipment sales, while full-year EPS fell 14.6% to $18.81 due to higher incremental costs, including the impact of tariffs.
4. Strategic Backlog and Contracts
Caterpillar ended the quarter with a record $51.2 billion backlog and secured an agreement to supply 2 gigawatts of natural gas generators and battery storage to American Intelligence and Power’s Monarch Compute Campus by 2027, underscoring strong future demand.