BMO Capital upgraded Caterpillar Inc. (ITW) on Tuesday, as the analysts believe the construction and mining equipment producer’s worst news is behind it.
The analysts upgraded CAT from “Market Perform” to “Outperform.” The firm also sees shares reaching $130, a +38% upside to Tuesday’s opening price of $97.92.
Caterpillar has been plagued with poor sales, diminishing demand, and overall growth concerns in the recent past. More over, the company booked big charges from accounting fraud at a recently acquired Chinese company that only added to the troubles. However, BMO Capital believes the worst is over and expects significant upside for the company in coming quarters.
Caterpillar shares were up 82 cents, or +0.84%, during morning trading on Tuesday. The stock is down -11.55% over the past year.
The Bottom Line
Shares of Caterpillar (CAT) have a dividend yield of 2.12% based on last night’s closing price of $97.45.
Caterpillar Inc. (CAT) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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