Caterpillar (CAT) Stock Jumps 46% YTD — and BofA Says It’s Not Done Yet

TLDR

• Caterpillar stock is up over 46% year-to-date, closing Thursday at $835.24
• BofA analyst Michael Feniger raised his price target 13% from $825 to $930, maintaining a Buy rating
• The $930 target implies roughly 11% upside and sits above CAT’s one-year high of $845.27
• BofA sees potential recovery in Caterpillar’s oil and gas portfolio in 2027
• Wells Fargo has an even higher target of $960, while the Wall Street consensus average sits at $769.94

Caterpillar has been one of the standout performers on Wall Street this year, up more than 46% year-to-date. Now Bank of America is making the case there’s still room to run.

Caterpillar Inc., CAT

BofA analyst Michael Feniger raised his price target on CAT by 13% to $930 on Friday, up from $825, while keeping his Buy rating in place. The new target sits above Caterpillar’s one-year high of $845.27 and implies around 11% upside from Thursday’s close of $835.24.

The move comes as investor attention on Caterpillar has largely centered on its power business. Demand for diesel and gas generator-set engines and turbines used to power data centers has been a key talking point for the stock.

Caterpillar’s Power & Energy segment makes up around 40% of total sales, and trends there remain strong according to BofA’s own Construction Dealer survey.

But Feniger’s latest note shifts some focus toward a part of the business that’s been quieter lately — oil and gas.

Energy Recovery on the Horizon

While the power side of the business has grabbed headlines, Feniger is now flagging the energy portion of Caterpillar’s portfolio as a potential source of upside heading into 2027.

He expects Caterpillar’s oil and gas portfolio to recover next year, which would support what he calls a “broadening out” of equipment demand beyond the power segment.

There is some near-term caution baked in. Feniger flagged possible pressure on Caterpillar’s sales in the Middle East in the shorter term, and acknowledged risk to mining and excavation sales as well.

He also noted that higher oil prices could indirectly weigh on construction activity in 2027 by pushing interest rates higher — but said Caterpillar’s portfolio has an “inherent hedge” that helps offset risks across different business cycles.

Leadership Change Ahead

On the corporate side, Caterpillar is heading into a transition. Kyle Epley is set to take over as Chief Financial Officer on May 1, 2026, as Andrew Bonfield steps down after a long tenure.

During Bonfield’s time at the helm of Caterpillar’s finances, the company posted 2025 sales and revenues of $67.6 billion, with a record $19.1 billion in the fourth quarter alone.

Other analysts have also been active on the stock. Wells Fargo holds the highest target on the Street at $960, citing earnings upside from new Solar Turbines projects. Jefferies reiterated a Buy with a $900 target, pointing to growth from U.S. natural gas pipeline expansion. Bernstein raised its target to $769, highlighting potential upside from inventory restocking.

The broader Wall Street picture shows 11 Buy ratings, five Holds, and one Sell over the past three months. The consensus average price target sits at $769.94 — roughly 8% below where the stock currently trades.

BofA’s $930 target is now one of the more bullish calls on the Street, and Feniger’s focus on the 2027 oil and gas recovery gives the bull case a second leg beyond data center power demand.

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