JPMorgan Trims Caterpillar Price Target To $505 On Tariff Concerns

JPMorgan lowered its price target on Caterpillar Inc. (NYSE:CAT) to $505 from $520 while maintaining an Overweight rating, citing risks from the latest tariff policies.

The bank said updated guidelines regarding the value of steel and aluminum in imported components and finished goods would affect Caterpillar as well as most industrial companies with global supply chains. The analysts noted that the long-term impact on Caterpillar’s sales, margins, and market share would depend on how reciprocal tariffs are implemented, which firms retain pricing power, and who can best adapt their supply chains under the “new normal.”