Caterpillar (CAT) has raised its targets for the 2024 to 2030 period for revenue, profit margin, and capital expenditures, the company said in a presentation for its Investor Day on Tuesday. The industrial giant is looking to raise the compound annual growth rate (CAGR) for its sales and revenues from 4% in 2024 to 5%-7% through 2030, while bringing its services revenues up to $30 billion per year from $24 billion in 2024. The company is also raising its adjusted operating profit margin target from a ran ...

Core Insights - The stock market has reached record highs this year, driven by AI enthusiasm, impacting not only Big Tech but also heavy industry [1] - Caterpillar reported significant sales growth in power generation machinery, with a stock increase of over 11% following its earnings report [2] - The demand for power generation is expected to grow as AI infrastructure expands, with Caterpillar confident in future opportunities [5] Company Performance - Caterpillar's power generation machinery sales saw a 33% year-on-year increase, particularly in reciprocating engines [4] - The company reported adjusted earnings per share (EPS) of $4.95 on $17.6 billion of revenue, surpassing analyst expectations [5] - Following Caterpillar's earnings report, Bank of America raised its price target for the company's shares from $594 to $650 [6] Industry Trends - The data center buildout has positively impacted the industrial sector, with the Industrials sector (XLI) up approximately 18% this year, slightly outperforming the S&P 500's 17% rise [7] - Honeywell also reported strong demand for data centers as a positive aspect of its third-quarter earnings [8]