Caterpillar Inc. (NYSE:CAT) shares traded higher on Wednesday after B of A Securities lifted the price forecast for the company on Tuesday.
Analyst Michael Feniger maintained a Buy rating and boosted the price forecast from $735 to $825.
Customer Capital Expenditure Boost
The analyst notes that a key customer for turbines (The Williams Companies) announcement of substantial increases in capital expenditures for 2026 is expected to bolster Caterpillar's business prospects significantly.
This strategic spending is anticipated to enhance Caterpillar's backlog, particularly in its turbine and engine sectors, which are crucial for the company's growth trajectory, adds the analyst.
The analyst expects the company to benefit from a robust pipeline of projects, with key sectors like power generation and infrastructure expected to outperform.
Feniger anticipates multi-year EPS recovery, driven by cyclical and structural growth factors such as higher commodity prices and infrastructure spending.
Recent Earnings Release
On January 29, Caterpillar released fourth-quarter 2025 financial results.
Sales and revenues were $19.133 billion, up 18% from $16.215 billion in the prior-year period. Adjusted profit per share was $5.16, beating a $4.66 estimate, while revenue exceeded a $17.851 billion estimate.
Technical Analysis
Caterpillar is currently exhibiting a very strong bullish technical setup, with its stock trading significantly above all key moving averages. This indicates strong upward momentum and a well-established uptrend across multiple timeframes.
Caterpillar stock has entered overbought territory, with its RSI at 73.61, which often suggests that a stock may be due for a pullback or consolidation. This overbought signal first appeared on February 6, 2026, so traders should watch for potential profit-taking.
The MACD for Caterpillar stock is currently above its signal line, which is a bullish sign confirming the positive momentum. This indicates that the buying pressure remains dominant in the short term.
A key support level for Caterpillar stock is identified at $619.50, which traders should monitor for potential bounces if the price retreats. There is currently no defined resistance level, as the stock is trading at new highs.
The death cross in March 2025 initially signaled a bearish shift for Caterpillar stock, but this was quickly reversed. The golden cross in July 2025, where the 50-day SMA crossed above the 200-day SMA, confirmed the start of the current powerful uptrend.
Caterpillar stock has delivered an impressive 12-month return of 113.44%, reflecting its strong performance over the past year. The stock is currently trading at 104.4% of its 52-week range, having reached a new 52-week high today, February 11, 2026.
Caterpillar stock is trading 16% above its 20-day SMA and 24.3% above its 50-day SMA, highlighting its strong short-term and intermediate-term strength. The stock's position 60.9% above its 200-day SMA further underscores a very strong long-term bullish trend.
While the current overbought RSI suggests caution, the overall technical picture for Caterpillar stock remains strongly bullish with clear upward momentum. Traders should continue to watch for potential consolidation or a retest of support levels as the stock navigates its new high territory.
CAT Price Action: Caterpillar shares were up 4.13% at $773.01 at the time of publication on Wednesday. The stock is trading at a new 52-week high, according to Benzinga Pro data.
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