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 ...