STOCKS | Multiple Firms Cut Caterpillar Price Targets as Shares Fall More Than 9%

Several firms sharply reduced their price targets for Caterpillar. According to Sina Finance, Daiwa Capital Markets cut its target from $900 to $690, JPMorgan lowered its target from $1,100 to $1,000, and Jefferies reduced its target from $1,045 to $785. Caterpillar said generator orders, favored by AI data center developers, are booked through 2030, but its shares fell more than 9% on Thursday to close at $647.39. The construction and mining equipment maker reported third-quarter sales slightly below expectations, while profit exceeded analysts’ estimates. Investors are increasingly concerned about companies’ exposure to the booming data center industry, as the rapid growth in data center projects draws mounting opposition from the public and some government officials, some of whom have called for a construction pause. Caterpillar shares are up nearly 26% year to date, driven by strong generator sales for AI data centers.