BofA Raises Caterpillar Price Target to $930 on Data Center Demand

Key Facts

BofA Securities has raised its price target for Caterpillar Inc. (CAT.US) to $930 while maintaining a Buy rating, citing unprecedented growth prospects in the Energy & Transportation segment. New projections indicate that electricity demand from data centers is set to surge by 200% by 2035, securing high-margin, long-term service and maintenance revenue for the company. Caterpillar's Power & Energy division has already reported a substantial revenue increase, contributing to a robust and growing order backlog. Analysts emphasize that this structural shift in digital infrastructure will likely drive earnings per share (EPS) above previous market estimates. Despite lingering geopolitical risks, the firm’s fundamental growth remains anchored by the global need for specialized power generation equipment. This outlook reinforces Caterpillar's strategic positioning as a primary beneficiary of the global AI and data center expansion.

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