BUZZ-Street View: Power demand keeps Caterpillar's 2027 growth outlook intact

October 30 - ** Caterpillar CAT.N on Thursday reaffirmed (link) its annual sales growth forecast, as strong data center power demand supported the company despite cost pressures and skepticism around artificial intelligence.

** The median target price among 30 brokerages covering the stock is $900 – LSEG data

Looking at the long term

** Morgan Stanley (maintains “Neutral” rating, target price: $675) stated that despite disputes among investors regarding the strength of the industrial cycle, the order backlog remains robust and earnings growth is expected to continue, though the stock price may trade in a range.

** BofA Global Research (“Buy”, target price: $746) said that as order volumes remain strong, the company is expanding capacity. If fundamental demand holds firm, there is further upside for the stock price by 2027.

** Daiwa Capital Markets (“Neutral”, target price: $690) noted that stronger pricing in 2027 could act as an upward catalyst, but slowing data center demand remains the main risk.

** Jefferies (“Buy”, target price: $785) pointed out that Caterpillar’s record backlog of unfulfilled orders and expanding power generation capacity support a stronger business profile by 2027, and the outlook for future sales is increasingly clear.

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