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Feb. 25, 2021, 9:26 a.m. EST

Caterpillar's stock rises toward another record after J.P. Morgan boosts price target

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By Tomi Kilgore

Shares of Caterpillar Inc. /zigman2/quotes/203434128/composite CAT +1.61% gained 0.6% in premarket trading Thursday, putting them on track for a fifth straight record, after J.P. Morgan analyst Ann Duignan boosted her price target by 16%, saying the "unprecedented" Texas winter storm could provide a catalyst for the construction and mining equipment maker. Duignan reiterated the overweight rating she's had on the stock for at least the past three years, while raising her price target to $237 from $205. "We view the unprecedented winter storm in Texas as a catalyst for near-term construction and back-up power equipment demand (rental initially, equipment sales thereafter) while also strengthening bipartisan support for a broad-based infrastructure package," Duignan wrote in a note to clients. She also expects oil and gas production to accelerate, and mining capital spending is entering a "sustained, demand-driven upcycle," which should also help boost Caterpillar results. The stock has rallied 27.4% over the past three months through Wednesday, while the Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA +0.44% has gained 7.0%.

/zigman2/quotes/203434128/composite
US : U.S.: NYSE
$ 233.05
+3.70 +1.61%
Volume: 176,739
April 14, 2021 9:50a
P/E Ratio
42.24
Dividend Yield
1.79%
Market Cap
$125.07 billion
Rev. per Employee
$429,044
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/zigman2/quotes/210598065/realtime
US : Dow Jones Global
33,825.95
+148.68 +0.44%
Volume: 38.76M
April 14, 2021 9:50a
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