ISI Group Reaffirms “Strong Buy” Rating on Caterpillar (CAT)
ISI Group reported on Monday that it has lowered its price target on construction and mining equipment manufacturer, Caterpillar Inc. (CAT).
The firm has maintained a “Strong Buy” rating on CAT, and has lowered the company’s price target from $120 to $119. This price target suggests a 25% upside from the stock’s current price of $89.53.
An analyst from the firm commented, “despite the Machinery sector continues to perform fairly well, investors are currently “fearing the calendar” (buy until May then go away has generally worked for 3 years now) and investors likely need some handholding/reassuring during next month’s earnings season, much more than they did in January. Thus CAT stock momentum likely does not return until after the sector breaks through “calendar risk” as not a ton of investors right now want to take on exposure to Machinery’s weakest end mkt (mining) amid CAT risk to 1Q and full year guidance. In general, we expect stories with more hair on them won’t regain appeal until the calendar risk issue is behind us.”
Caterpillar shares were up 82 cents, or 0.92% during Monday afternoon trading. The stock has declined -21% in the past year.
The Bottom Line
Shares of Caterpillar Inc. (CAT) have a 2.32% yield, based on Monday afternoon’s price of $89.74.
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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