RBC Sees Balanced Outlook for Caterpillar Amid Mid-Cycle Momentum

Caterpillar Inc. (NYSE:CAT) is one of the most profitable manufacturing stocks to buy now.

On October 22, 2025, RBC Capital Markets initiated coverage of Caterpillar with a Sector Perform rating and a $560 price target. The firm’s analysts noted that Caterpillar is “well‑positioned in a generally mid‑cycle operating backdrop,” but added that current market expectations already reflect the company’s fundamentals.

In other words, while the business remains healthy, RBC doesn’t see a strong case for outperformance unless new upside catalysts emerge. Their view echoes a broader market consensus: construction and mining demand remain solid, but growth expectations are now embedded in valuation, and investors may need to wait for a new leg up.

Caterpillar Inc. (NYSE:CAT) is a global leader in heavy equipment manufacturing, producing construction and mining machinery, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Its core revenue streams are tightly linked to infrastructure, energy, and commodity cycles — placing it at the center of industrial capex trends worldwide.

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Disclosure: None.