Caterpillar shares drop on analyst downgrades

Caterpillar Inc. shares fell 4.8% in morning trading on Thursday as multiple analysts reduced their price targets ahead of the company's third-quarter earnings report.

Bernstein SocGen cut its price target to $749 from $1,002 while keeping a Market Perform rating. The firm warned that a slowdown in bookings momentum is not properly reflected in the current valuation, though it projected a roughly 20% earnings beat for the third quarter with record backlog coverage.

Oppenheimer reduced its target to $1,009 from $1,118 on Tuesday, pointing to increased price and cost pressures on margins. Citigroup had already lowered its target to $950 from $1,100 earlier this week.

Caterpillar is scheduled to release third-quarter results on October 29, 2026.

The company announced Thursday that Denise Johnson, group president of Resource Industries, will retire effective February 1, 2027. Derrick York will step into the role on November 1, 2026.

The company's chief executive officer recently sold nearly half of his ownership stake.

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