Barclays Raises Caterpillar (CAT) Target in Machinery Sector Preview

Caterpillar Inc. (NYSE:CAT) is included among the 12 Best Dow Jones Dividend Stocks to Buy According to Hedge Funds.

On January 23, Barclays lifted its price target on Caterpillar Inc. (NYSE:CAT) to $610 from $555 and kept an Equal Weight rating on the stock. The update came as part of the firm’s fourth-quarter preview for the machinery and construction group. In its note, Barclays said companies that stand to benefit from interest rate cuts “still reign supreme.” At the same time, the firm expects management teams to strike a cautious tone, with “conservative” initial outlooks for 2026.

Earlier this month, on January 7, Caterpillar announced a deeper partnership with NVIDIA aimed at bringing AI-driven tools into both customer solutions and manufacturing systems. The goal is to change how work gets done across Caterpillar’s ecosystem, from customers and dealers to employees. As part of that push, Caterpillar is investing to make its equipment ready for an AI-enabled future.

The collaboration centers on NVIDIA’s Jetson Thor platform, which allows real-time AI processing on Caterpillar’s construction, mining, and power equipment. That capability is expected to support more advanced automation, smarter in-cab features, and, over time, AI-assisted and potentially autonomous operations.

Caterpillar also used CES 2026 to introduce the Cat AI Assistant. The tool is designed to act as a built-in digital partner within Cat’s onboard and digital products, helping customers make decisions with more confidence. Built using NVIDIA Riva open speech models, the assistant can answer questions and offer tailored recommendations related to equipment, parts, maintenance, and other day-to-day needs.

Inside the cab, the assistant relies on voice activation to adjust settings, walk operators through troubleshooting, and connect them to relevant tools across Caterpillar’s apps and websites. It pulls from Caterpillar’s own data housed on the Helios unified data platform, ensuring the information is reliable and tailored to each situation.

Caterpillar Inc. (NYSE:CAT) is the world’s largest manufacturer of construction and mining equipment, as well as off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives.

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Disclosure: None.