Buzz-Street View: Bulls stay aboard as CAT's growth engine gains steam

Caterpillar lifted its annual revenue growth outlook on Tuesday after beating second-quarter profit expectations, driven by AI data center-related demand for its power-generation and construction equipment.

Median price target of 30 brokerages covering the stock is $950.95, according to data compiled by LSEG.

• Citigroup (buy, PT: $1100) sees the company benefiting from sustained strength in mining, construction, services and AI-related power demand.
• Bernstein (market-perform, PT: $1002) says the company's "power engine keeps humming," noting that demand for power generation remains capacity constrained as AI data-center buildouts continue.
• BofA Global Research (buy, PT: $989) says "CAT is in attack mode," pointing to market-share gains in construction and mining, expanding power generation capacity and strong pricing power that has helped offset inflationary pressures.
• J.P. Morgan (PT: ) says the company's strong backlog growth and widening demand for power-generation equipment suggest margins could land near the high end of the company's target range, while AI data center-related orders are extending visibility into 2029 and 2030.