Assessing Caterpillar: Insights From 13 Financial Analysts

Caterpillar CAT has been analyzed by 13 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $386.69, along with a high estimate of $490.00 and a low estimate of $243.00. Experiencing a 4.38% decline, the current average is now lower than the previous average price target of $404.42.

Interpreting Analyst Ratings: A Closer Look

The standing of Caterpillar among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |Steven Fisher |UBS |Lowers |Sell | $243.00|$385.00 | |David Raso |Evercore ISI Group |Raises |In-Line | $375.00|$365.00 | |Michael Shlisky |DA Davidson |Raises |Neutral | $357.00|$350.00 | |Jamie Cook |Truist Securities |Lowers |Buy | $438.00|$455.00 | |Steven Fisher |UBS |Raises |Neutral | $385.00|$355.00 | |Kyle Menges |Citigroup |Raises |Buy | $430.00|$420.00 | |Tami Zakaria |JP Morgan |Lowers |Overweight | $490.00|$515.00 | |Michael Feniger |B of A Securities |Lowers |Buy | $414.00|$452.00 | |Angel Castillo |Morgan Stanley |Lowers |Underweight | $300.00|$330.00 | |Steven Fisher |UBS |Raises |Sell | $355.00|$295.00 | |Jamie Cook |Truist Securities |Lowers |Buy | $455.00|$471.00 | |Kyle Menges |Citigroup |Lowers |Buy | $420.00|$460.00 | |David Raso |Evercore ISI Group |Announces |In-Line | $365.00|- |

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Caterpillar. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Caterpillar compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Caterpillar's stock. This analysis reveals shifts in analysts' expectations over time.

For valuable insights into Caterpillar's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Caterpillar analyst ratings.

All You Need to Know About Caterpillar

Caterpillar is the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Its reporting segments are: construction industries (40% sales/47% operating profit, or OP), resource industries (20% sales/19% OP), and energy & transportation (40% sales/34% OP). Market share approaches 20% across many products. Caterpillar operates a captive finance subsidiary to facilitate sales. The firm has global reach (46% US sales/54% ex-US). Construction skews more domestic, while the other divisions are more geographically diversified. An independent network of 156 dealers operates approximately 2,800 facilities, giving Caterpillar reach into about 190 countries for sales and support services.

Caterpillar's Financial Performance

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Decline in Revenue: Over the 3M period, Caterpillar faced challenges, resulting in a decline of approximately -5.01% in revenue growth as of 31 December, 2024. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: Caterpillar's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 17.21% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Caterpillar's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 14.35% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Caterpillar's ROA stands out, surpassing industry averages. With an impressive ROA of 3.21%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Caterpillar's debt-to-equity ratio stands notably higher than the industry average, reaching 1.97. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

How Are Analyst Ratings Determined?

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.