Citi Lifts Caterpillar (CAT) Target as Construction and Mining Outlook Improves

Caterpillar Inc. (NYSE:CAT) is included among the 15 Best Blue-Chip Stocks with Growing Dividends.

On December 11, Citi raised its price target for Caterpillar Inc. (NYSE:CAT) to $690 from $670 and kept a Buy rating on the stock. The firm updated its machinery group models as part of its 2026 outlook. Citi sees the most opportunity in construction and mining next year. Agriculture and trucks could stay a bit sluggish in the near term, the analyst said in a research note.

In Q3 2025, Caterpillar Inc. (NYSE:CAT)’s sales jumped 10% to $17.6 billion. Power-generation revenue soared 33%, helped by strong demand for reciprocating engines used in AI data centers. Profits took a small hit, partly because of tariffs. Adjusted operating margin fell to 17.5% from 20% a year earlier. Adjusted EPS dropped to $4.95 from $5.17. Still, that beat Wall Street’s $4.52 estimate.

Caterpillar keeps generating cash. Free cash flow reached $3.2 billion in Q3, letting the company return $700 million in dividends and $400 million in stock buybacks. Orders are piling up. The backlog grew $2.4 billion from Q2 and $11.2 billion from last year’s Q3, hitting a record $39.8 billion. The company also declared a $1.51 quarterly dividend on December 10.

Caterpillar Inc. (NYSE:CAT) is the world’s largest maker of construction and mining equipment and offers a wide range of products beyond that.

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