Caterpillar Inc.: Morgan Stanley analysts upgrade stock rating to Equal-Weight

2026. 5. 8. 오후 1:58:08

Current trend

Shares of Caterpillar Inc., the American manufacturer of construction and mining equipment, are trading in an upward trend, approaching the 895.00 level.

Following the publication of the Q1 financial results, almost all analytics significantly improved their forecasts for the asset’s dynamics. Thus, Morgan Stanley experts adjusted the stock rating from Underweight to Equal-Weight and the target price from 430.00 to 915.00. The key factor behind this decision was the corporation’s rapid development in the power generation sector, where gas engines for data centers saw the highest demand. According to analysts, the global strengthening of the artificial intelligence (AI) services market is increasing demand for power generation and could lead to an increase in Caterpillar Inc.’s average annual revenue growth rate to 12.0% through 2030, which far exceeds the performance of sector competitors.

The Q1 report was published at the end of April, and revenue reached 17.4B dollars, surpassing both the forecast of 16.49B dollars and the 14.25B dollars recorded in the same period last year. Earnings per share reached 5.54 dollars, higher than last year’s 4.25 dollars and the previous quarter’s 5.16 dollars. The next dividend payment will take place on May 19, when investors will receive 1.51 dollars per share. Despite stable transactions, the yield stands at 0.76%, lower than the industry average of 1.46%, which is one of the reasons for the low attractiveness of the stock for traders.

Support and resistance

On the daily chart, the trading instrument is approaching the resistance line of the ascending channel with dynamic boundaries of 950.00–790.00.

Technical indicators are reinforcing the buy signal received in early April: the fast EMAs of the Alligator indicator are moving away from the signal line, and the AO histogram is forming ascending bars in the positive zone.

Support levels: 880.00, 790.00.

Resistance levels: 940.00, 1030.00.

Trading tips

Long positions can be considered after the price rises and consolidates above 940.00 with the target at 1030.00. Stop loss is below 900.00. Implementation period: 7 days or more.

Short positions can be considered after the price drops and consolidates below the 880.00 level with the target at 790.00 and stop loss 930.00.

시나리오

타임프레임	Weekly
추천	BUY STOP
진입 지점	940.05
Take Profit	1030.00
Stop Loss	900.00
지지선	790.00, 880.00, 940.00, 1030.00

대체 시나리오

추천	SELL STOP
진입 지점	879.95
Take Profit	790.00
Stop Loss	930.00
Stop Loss	790.00, 880.00, 940.00, 1030.00