Freedom Capital Markets has revised its price target on Caterpillar to $700 from $530 while retaining a Hold recommendation on the heavy equipment maker. The $700 target sits near Caterpillar's quoted price of $686.15, with the stock described as trading approximately 1% below a reported 52-week high of $679.99.
The research note credits Caterpillar's record revenue performance in 2025 as a primary rationale for the target increase. The company posted $67.59 billion in revenue for the year, representing growth of 4.29% versus the prior year, even after absorbing import tariffs that the report quantified at $1.7 billion for the period.
Freedom Capital highlighted multiple drivers behind the company's resilience. The firm pointed to what it characterized as unprecedented demand for datacenter power solutions and a record backlog in the order books as central to Caterpillar's performance. Additionally, the research team emphasized the company's strategic emphasis on services and operational efficiency as elements that have helped preserve its market position.
Despite the upward revision to its price objective, Freedom Capital kept its Hold rating, an indication from the firm that it sees only limited additional upside from then-current share levels. The note stated this view aligns with analyses suggesting the stock may be overvalued at current trading levels. The firm also referenced the availability of a Pro Research Report covering the company within a broader library of top U.S. equities for investors seeking deeper detail.
The move by Freedom Capital came in the wake of strong quarterly results from Caterpillar. In its fourth quarter, the company reported adjusted earnings per share of $5.16, a figure the report said topped analyst expectations by 9% and was driven by stronger-than-expected sales and margins. Caterpillar's total backlog was reported at a record $51.2 billion, a 71% increase year over year.
Those fourth-quarter results prompted several other analysts to lift their targets. The note listed multiple updated price objectives and ratings: Truist Securities increased its target to $786 while keeping a Buy rating; BofA Securities raised its target to $735 and maintained a Buy; DA Davidson set a $650 target, citing expected growth in Caterpillar's datacenter segment in 2026; Bernstein SocGen Group moved its target to $678, noting strong demand despite margin pressures; and RBC Capital set a $658 target, with an analyst suggesting Caterpillar's 2026 guidance could be conservative.
Collectively, the analyst activity reflects a generally constructive view on demand and backlog dynamics, even as at least one prominent firm stopped short of upgrading its recommendation because upside from prevailing prices appears constrained. The combination of elevated tariffs, margin pressures and potential conservatism in guidance are reflected in differing target levels across the analyst community.
- Company: Caterpillar reported record revenue of $67.59 billion in 2025 with 4.29% year-over-year growth.
- Quarterly result: Adjusted EPS of $5.16 in Q4, 9% above analyst expectations; total backlog $51.2 billion, up 71% year over year.
- Analyst action: Freedom Capital raised its target to $700 (from $530) but kept a Hold rating; multiple other firms raised targets and maintained Buy ratings at varying levels.
Investors evaluating Caterpillar will need to weigh the strength in demand and backlog against tariff-related costs and margin dynamics when assessing risk and potential upside from current price levels.