Caterpillar’s Price Target Raised to $785 and Wins $840M Power Equipment Deal
Citi raised Caterpillar’s price objective to $785 from $760, citing healthy U.S. construction activity and strong equipment rental outlook. The company secured an $840 million Atlas Energy order for 1.4 GW of natural gas generator sets delivered between 2027 and 2029 on rising electricity demand.
1. Citi Lifts Price Target to $785
Citi raised its price objective on Caterpillar to $785 from $760 and reaffirmed a Buy rating, highlighting robust demand signals from the recent ConExpo trade show. Analysts pointed to a significant pipeline of mega projects and a positive outlook for the equipment rental market as key drivers of their upgrade.
2. $840M Atlas Energy Equipment Agreement
Caterpillar agreed to supply Atlas Energy with approximately $840 million of power-generation equipment through 2029, covering 1.4 GW of incremental natural gas generator sets. Deliveries of CG260-16 and G3520 series units are scheduled between 2027 and 2029 for behind-the-meter and bridge-power applications.
3. Rising Electricity Demand Underpins Order
U.S. electricity consumption is projected to surge due to growth in AI and cryptocurrency data centers and expanded electrification of heating and transportation. Atlas Energy expects to own and operate about 2 GW of generation assets by 2030, securing manufacturing capacity with Caterpillar’s equipment to meet that demand.