Goldman Sachs Downgrades Caterpillar; Lowers Outlook (CAT)

Goldman Sachs Downgrades Caterpillar; Lowers Outlook (CAT)


Goldman Sachs reported on Wednesday that it has reduced its rating on mining equipment manufacturer, Caterpillar Inc. (CAT).

The firm has downgraded CAT from “Buy” to “Neutral,” and has lowered the company’s price target from $116 to $101. This price target suggests a 17% increase from the stock’s current price of $84.

“… in an over-supplied commodity environment we no longer see upside to consensus earnings expectations,” the analyst reported.

Looking ahead, the firm has lowered its estimates for FY2013 from $8.54 to $7.66 per share. For FY2014, the firm has cut its EPS estimate from $10.63 to $9.25 per share. FY2015 estimates have been reduced to $10.35 from $11.61 per share.

Caterpillar shares were down 88 cents, or -1.04% during premarket trading Wednesday. The stock has declined -20% in the past year.

The Bottom Line
Shares of Caterpillar Inc. (CAT) have a 2.45% yield, based on Tuesday’s closing price of $84.88.

Caterpillar Inc. (CAT) is not recommended at this time, holding a DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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