Bernstein Raises Caterpillar (CAT) Target as 2026 Recovery Comes Into View

Group 1 - Caterpillar Inc. is recognized as one of the 14 Best Dividend Aristocrats to invest in heading into 2026 [1] - Bernstein raised its price target for Caterpillar to $630 from $557, maintaining a Market Perform rating, anticipating a recovery in 2026 driven by better alignment of monetary and fiscal policies [2] - The company experienced a 9.6% decline in stock price over five sessions ending December 18, marking the weakest performance in the S&P 500 Machinery Index, but has since rebounded nearly 1% through December 22 [3] Group 2 - Caterpillar's stock saw a significant rise of approximately 60% this year, attributed to its involvement in AI-related markets and lower interest rates supporting construction activity [4] - The company is the world's leading manufacturer of construction and mining equipment, also producing off-highway diesel and natural gas engines, industrial gas turbines, and providing related power systems and financial products [5]