Caterpillar (CAT) Price Target Raised by BofA as Turbine Demand Broadens

BofA recently raised its price target for Caterpillar Inc. (CAT) to $825 from $735, reiterating a Buy rating. The increase is driven by broadening turbine demand beyond data centers and “eyepopping growth” in Caterpillar’s power generation unit, including a 24% year-over-year rise in oil and gas demand. Caterpillar is benefiting from AI growth through its construction equipment for data centers and its Power & Energy segment providing stable and backup power solutions.

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