Jefferies Sees Further Upside as Caterpillar’s (CAT) Broader Portfolio Gains Traction

On January 27, Jefferies raised its terms people connected Caterpillar Inc. (NYSE:CAT) to $750 from $700 and reiterated a Buy standing connected the stock. The expert said the setup for Q4 net “feels successful enactment to perchance conservative,” pointing to dependable measurement trends and continued borderline betterment crossed some concern segments arsenic enactment for the higher target. While Caterpillar’s powerfulness procreation communicative is “now good appreciated,” Jefferies noted that faster maturation successful the remainder of the portfolio could inactive assistance the shares further.

Caterpillar Inc. (NYSE:CAT) is preparing to study its Q4 2025 results, and expectations are affirmative pursuing a precise beardown anterior quarter. In Q3 2025, gross from the vigor and proscription conception roseate 17% twelvemonth implicit year, helping thrust full institution gross maturation of 10%. CEO Joe Creed has told investors that the company’s backlog continues to turn arsenic Caterpillar supplies captious power-generation solutions for AI information centers. The institution besides benefits from request for its dense instrumentality utilized successful the operation of those facilities.

Caterpillar has been a ascendant unit successful operation and concern instrumentality for much than 100 years. While it has weathered countless boom-and-bust cycles, the existent surge successful AI-related request could beryllium the adjacent large operator pushing the banal toward caller all-time highs.

While we admit the imaginable of CAT arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None.