Mining and construction equipment manufacturer Caterpillar (CAT) revealed that it has acquired Enhanced Energy Group. The acquired company operates as CarbonPoint Solutions and provides technology to concentrate and capture CO₂ for utilization or sequestration.

After the completion of the deal, CarbonPoint Solutions' patented processes will be applied to engines and turbines at oil and gas sites, distributed power and industrial plants and waste-to-energy sites.

The move forms part of Caterpillar’s strategy to ensure a reduced-carbon future. (See Caterpillar stock charts on TipRanks)

The Vice-President of Caterpillar's Oil & Gas and Marine Division, Rod Shurman, said, “Combining CarbonPoint Solutions' patented technology with Caterpillar Oil & Gas solutions enables us to further reduce greenhouse gas emissions while helping our customers meet their climate-related objectives." 

Last month, Tigress Financial analyst Ivan Feinseth maintained a Buy rating on Caterpillar with a price target of $270, which implies 31.7% upside potential.

Feinseth noted, “CAT is well-positioned to gain from a post-pandemic global recovery in construction and mining spending and new infrastructure initiatives.”

The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 6 Buys, 2 Holds and 1 Sell. The average Caterpillar price target of $241.33 implies 17.7% upside potential to current levels.

CAT scores an 8 out of 10 on TipRanks’ Smart Score rating system, suggesting that the stock is likely to outperform market averages.

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The post Caterpillar Acquires CarbonPoint Solutions appeared first on TipRanks Financial Blog.

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By: Radhika Saraogi
Title: Caterpillar Acquires CarbonPoint Solutions
Sourced From: blog.tipranks.com/caterpillar-acquires-carbonpoint-solutions/
Published Date: Mon, 13 Sep 2021 11:15:40 +0000

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