Caterpillar Inc. (NYSE:CAT) received a rating upgrade by UBS on 16th May 2025, from “Sell” to “Neutral”, at a price target of $357, previously $340. The bank highlighted a more contained downside scenario for the stock after recent progress in U.S.-China trade talks, though analysts warned the company is “not out of the macro woods.”
A construction crew operating a hydraulic shovel during a nighttime project.
UBS analysts stated that the bank was seeing positive momentum in China’s excavator industry and strong demand for data centre backup power stations. Caterpillar Inc. (NYSE:CAT) global manufacturing footprint and ability to navigate economic uncertainties give the company the required muscle to meet the Chinese mining industry’s rise in demand before competitors.
This update follows Wolfe Research’s upgrade of Caterpillar Inc. (NYSE:CAT) last week. Analyst Mig Dobre of Wolfe Research stated that there were multiple factors driving their upgrade of CAT to “Outperform”, including the recent pause between US and Chinese trade tariffs and positive data from the Chinese mining sector, which are likely to boost CAT’s 2026 margins.
Overall, Caterpillar Inc. (NYSE:CAT) is considered a stable investment among analysts. Out of the 28 analysts on Wall Street following the stock, 14 have a “Strong Buy/Buy” recommendation, while the remaining have a “Hold” recommendation, with a consensus on the average twelve-month share price at $368.01.
While we acknowledge the potential of CAT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CAT and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
