Caterpillar rises after Evercore lifts rating, PT

Construction equipment maker Caterpillar's shares CAT.N rise 1.8% to $420 premarket

Evercore ISI upgrades rating to "outperform" from "in line", lifts price target to $476 from $373

Notes CAT's "recent resilience in construction equipment margins amid price-cost negativity"

Says CAT could look to reduce current discounting further, sees EPS upside later in 2025 and into 2026

"Given the appetite for the stock already via its power generation/data center exposure, machine upside would be a material incremental positive to broaden CAT appeal," says Evercore ISI

Fourteen brokerages rate the stock "buy" or higher, 13 "hold" and 1 "sell"; their median PT is $424.06 - LSEG-compiled data

YTD, CAT had risen 13.8%, compared with a 5.6% increase in the Dow Jones U.S. Industrials Index .DJI