Caterpillar Stock Upgrade: Freedom Broker Sees 20% Upside Potential

Caterpillar's stock rating has been upgraded to 'Buy' by Freedom Broker, which also sets a price target of $980. This implies roughly 20% upside potential from current levels.

The firm based its upgrade on discussions with Caterpillar regarding new tariffs. While the company is still assessing the associated risks, Freedom Broker estimates that the pricing impact on finished products could be less than 0.2% of revenue, equivalent to an upper bound of approximately $150 million annually.

Caterpillar generates $74.7 billion in revenue over the last twelve months, making this tariff exposure a relatively modest headwind to the company's overall financial performance.