10.5% Above Target

CAT's consensus price target is $882.2, -10.5% below the current price of $985.82. The 53 analysts tracking CAT see downside risk at present valuations.

CAT has a consensus rating of "Buy" based on 53 Wall Street analysts. The rating breakdown is mixed, with 21 Hold ratings making up the largest segment. The consensus 12-month price target of $882.2 implies -10.5% downside from current levels.

At a forward P/E of 39.9749x, CAT trades at a premium valuation. The consensus price target of $882.2 (-10.5% downside) suggests analysts may view current valuations as stretched.

The most bullish Wall Street analyst has a price target of $1165 for CAT, while the most conservative target is $658. The consensus of $882.2 represents the median expectation. Our quantitative valuation model projects a bull case target of $1626 based on optimistic growth and margin assumptions. These targets typically reflect 12-month expectations.

CAT is heavily covered by Wall Street, with 53 analysts providing price targets and ratings. Of these, 0 have Strong Buy ratings, 25 have Buy ratings, 21 recommend Hold, and 7 have Sell or Strong Sell ratings. Higher analyst coverage generally indicates greater institutional interest and more reliable consensus estimates.

The 12-month CAT stock forecast based on 53 Wall Street analysts shows a consensus price target of $882.2, with estimates ranging from $658 (bear case) to $1165 (bull case). The median consensus rating is "Buy". Our proprietary valuation model produces a base case fair value of $1234, with bear/bull scenarios of $778/$1626.

Our quantitative valuation model calculates CAT's fair value at $1234 (base case), with a bear case of $778 and bull case of $1626. The model uses discounted cash flow analysis, historical growth rates, and margin mean-reversion to project FY+2 earnings, then applies an appropriate P/E multiple. The model confidence score is 54/100.

CAT trades at a forward P/E ratio of 40.0x based on next-twelve-months earnings estimates compared to a trailing P/E of 52.4x. The lower forward P/E indicates analysts expect earnings growth. A forward P/E is useful for comparing valuations when earnings are expected to change significantly.

Analysts are cautious on CAT, with 7 Sell ratings and a price target of $882.2 (-10.5% from current price). The "Buy" consensus suggests careful evaluation before buying. This information is for educational purposes only. Always conduct your own research, consider your financial situation, and consult a financial advisor before making investment decisions.

CAT analyst price targets range from $658 to $1165, a 57% wide spread indicating significant analyst disagreement. Differences stem from varying assumptions about revenue growth, profit margins, competitive dynamics, and valuation multiples. The $882.2 consensus represents the middle ground. Our model's $778-$1626 range provides an independent fundamental perspective.