'Caterpillar's Entire Portfolio Benefits': Analyst Foresees 'Decade Of The Infrastructure Renaissance'

Caterpillar Inc. CAT has been in focus as being among the beneficiaries of the AI wave.

While the company’s earnings are likely to be supported by “strong secular tailwinds,” the market seems to underappreciate its earnings power, according to Truist Securities.

The Caterpillar Analyst: Jamie Cook initiated coverage of Caterpillar with a Buy rating and price target of $390.

The Caterpillar Thesis: Construction investment is poised to increase during the “decade of the infrastructure renaissance,” Cook said in the initiation note.

Check out other analyst stock ratings.

Although Caterpillar delivered record earnings in 2023, there is “more room for upside,” the analyst stated, adding that the company is among the “bigger beneficiaries of stimulus associated with infrastructure and energy transition.”

“The dollars are significant: The IIJA has allocated ($500B+), Inflation Reduction Act ($1T+), on shoring of semiconductor manufacturing ($200B) and North America LNG ($100B+) which implies $2T plus in spend over the next five to ten years creating a nice tailwind for the industry,” Cook wrote. “Caterpillar’s entire portfolio benefits,” he added.

CAT Price Action: Shares of Caterpillar had risen by 0.53% to $343.34 at the time of publication on Thursday.

Now Read: Producer Inflation Tops Forecasts In February, Signals Anxiety Over Price Pressure Resurgence

Photo: Sallehudin Ahmad/Shutterstock.com

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorLong IdeasInitiationTop StoriesAnalyst RatingsTrading IdeasExpert IdeasJamie CookStories That MatterTruist Securities
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!