1. BofA maintains a Buy rating for Caterpillar (CAT) with a $385 target. 2. Caterpillar's Energy & Transportation segment drives upcoming earnings growth. 3. E&T contributes 40% to total sales; expected to stabilize earnings. 4. Management increases capex significantly for power generation capabilities. 5. 2025 projected revenues at $59.3 billion and EPS of $17.50.
BofA's Buy rating and increased target indicate strong market confidence in CAT's growth, particularly with the expansion of the E&T segment, which parallels past earnings success during market upswings.
The article outlines substantial expected growth areas for Caterpillar, especially in the E&T sector, which is critical for long-term profitability.
The enhancements in the E&T segment's capacity and expected revenue growth suggest a prolonged positive influence on CAT's financial performance as industry demands rise through 2030.