Bernstein cuts Caterpillar stock price target on bookings concerns

Caterpillar (CAT) and Deere (DE) shares fell 7% and 4% respectively as 30-year Treasury yields rose to 5.7%, the highest in over 20 years. Both companies were trading at high multiples before the selloff. CAT's growth is driven by AI-related power sector, while DE's outlook depends on agricultural demand recovery. Hedge fund ownership in both companies has slightly declined.

Industrial Info Resources reports over 75 active U.S. construction equipment manufacturing projects valued at $2 billion. Caterpillar plans a $1 billion investment in North Carolina, while JCB and John Deere are expanding facilities. Infrastructure and data center demand drive growth.

Caterpillar (CAT) shares fell 6.04% to $811.37 Wednesday amid a broader decline in farm equipment stocks. The drop follows a joint FTC and USDA request for public comment on agricultural equipment markets, citing potential anticompetitive behavior. While the inquiry names Deere & Company, Caterpillar's decline may reflect sector-wide concerns about increased government intervention.

Caterpillar (CAT.US) shares fell 5.5%, the worst performer in the Dow Jones. Truist Securities cut its price target to $1,100, citing concerns over spending durability and macroeconomic factors. Despite a 50% YTD gain, the stock is down 30% from its peak. Investors await Q3 earnings on October 29. The company's valuation reflects high expectations for AI-related growth, with a trailing P/E of 37 and forward P/E of 32.

Caterpillar (CAT) shares dropped 6% to $811.70, Deere (DE) fell 4% to $657.95, and PACCAR (PCAR) declined 2% to $106.66 as long-term Treasury yields hit 20-year highs, impacting credit-driven equipment demand. The Industrial Select Sector SPDR ETF (XLI) fell 2%. CAT announced a $1B investment to expand compact equipment capacity in North Carolina.

The FTC and USDA launched an inquiry into the agricultural equipment market, citing farmer complaints about access to equipment and services. Deere & Co. shares fell 5.7%, while AGCO Corp. and CNH Industrial NV dropped 8.4% and 7.3%, respectively. Caterpillar Inc. shares also declined 6.4%. The investigation is part of the FTC's efforts to ensure competition in the agricultural sector, following a recent settlement with Deere.