Sam Boughedda

Investing.com — Caterpillar Inc’s (NYSE:) price target was raised to $282 from $278 by Tigress Financial Partners analyst Ivan Feinseth on Friday.

The analyst reiterated the Buy rating of the stock in a note to investors. He stated that “strong end-market demand is driven by strong trends capital equipment spending” and also announced a $15 billion share repurchase during Analyst Day.

“CAT can benefit from capital equipment spending, mainly driven by the expanding energy market and growing mining markets,” Feineth said. CAT benefits from a strong global recovery which drives increased commodity prices and construction demands,” Feinseth said.

In late April, the company reported a revenue increase of 14% over earnings estimates. The company’s revenue rose by 14% to $13.6 Billion year-over-year, mainly due to higher sales volumes and increased demand for services and equipment.

The analyst stated that CAT will see continued strong demand for its mining equipment due to increased global demand for lithium.

“Catalyst will continue to increase shareholder returns by increasing dividends and repurchasing shares, as a result of cash flow improvements.” The 12-month target price at $282 is a potential return on capital with dividends that exceed 40% from the current level.

Caterpillar stocks are lower by 5.3% as of Friday