- Commodity prices have lifted off in 2022, with the Bloomberg Commodity Index up 30.11% YTD.
- Caterpillar's product offerings, which directly support the mining and exploration of these various commodities, should see increased demand as a result of higher prices.
- Caterpillar's backlog grew 62.6% Y/Y, creating a reliable source of revenue to be recognized over the next year.
- My DCF model suggests a fair value of $260.76, suggesting 21% upside from current levels.
For further details see:
CAT: Growing Backlog And Rising Commodity Prices Suggest Further Upside