PomegraCaterpillar Stock Falls 3.3% on Analyst Cuts, FTC Inquiry
Why did Caterpillar stock fall 3.3%?
Caterpillar (CAT) stock fell 3.3% to $772.78 on Tuesday after Citi cut its price target to $950 and investors questioned how long its data-center power boom can last.
Key numbers
| Close, Oct 13 | $772.78-3.3% on the day |
|---|---|
| Midday drop | -5%closed at -3.3% |
| Citi price target | $950from $1,100 |
| Expected-earnings multiple (fwd P/E) | 26.8xvs 16.1x Cummins |
| Backlog at end of Q2 | $72Borders already booked |
What happened
Caterpillar (CAT) stock fell 3.3% to $772.78 on Tuesday after Citi cut its price target to $950 and investors questioned how long its data-center power boom can last. Citi cut its price target (where it thinks the stock could trade in a year) from $1,100 to $950 but kept its Buy rating, citing doubts that data-center and AI power spending can stay strong. On Oct. 7, two US agencies, the FTC and USDA, opened a public inquiry into farm-equipment makers, and Caterpillar fell 5.7% that day, as did Deere (-5%). The stock is now about 28% below its June high.
Why it matters
Caterpillar's stock had been priced for fast growth because AI data centers need the power equipment it sells. Now analysts are asking whether that boom will last, and the shares trade at about 27 times expected yearly profit, versus about 16 times for engine-maker Cummins. Higher interest rates also make big machines costlier for customers to finance.
Who this affects
- MarketbearishLow impact
- Industrial stocks slipped 1%; the broad market barely moved.
- CompanybearishMedium impact
- Shareholders lose value; shares sit about 28% below June peak.
- CompetitorsmixedMedium impact
- Deere rose 2.8%, but farm-equipment rivals face the same inquiry.
- IndustrybearishMedium impact
- Farm-equipment makers face possible scrutiny of repair and dealer practices.
Caterpillar vs Deere, Cummins, GE Vernova
How we got here
Truist cuts Caterpillar price target to $1,100 from $1,225, keeping a positive rating (per).
FTC and USDA open farm-equipment inquiry; Caterpillar falls 5.7% to $813.83.
Citi cuts target to $950 from $1,100; Caterpillar closes at $772.78.
What to watch
- Caterpillar third-quarter results, including data-center power orders and about $600M expected tariff costs (per).2026-11-04
- Public comment period on the FTC and USDA farm-equipment inquiry closes.2026-12-07
Educational content only. Not investment advice.
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