Analyst raises CAT target after company forecasts low double-digit sales growth and reduced tariff costs for 2026.
Evercore ISI increased its price target for Caterpillar Inc. (NYSE:CAT) to $1,103 from $878, maintaining an Outperform rating. The adjustment follows the company’s Q1 2026 earnings call, where executives projected low double-digit sales and revenue growth for the full year.
Caterpillar lowered its 2026 tariff cost estimate to $2.2 billion-$2.4 billion from $2.6 billion previously. Restructuring charges of $300 million-$350 million and capital expenditures of $3.5 billion remain unchanged. Free cash flow is expected to exceed last year’s $9.5 billion.
CEO Creed dismissed material impacts from geopolitical uncertainty or higher energy prices on the 2026 outlook. The company plans to offset tariff costs in the second half of the year.