Caterpillar (CAT) April Sales Viewed as Neutral

May 20, 2013 10:53 AM EDT
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Price: $93.57 --0%

Rating Summary:
    11 Buy, 19 Hold, 4 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 9 | Down: 12 | New: 44
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Wells Fargo maintained a Market Perform rating on Caterpillar (NYSE: CAT) with a price target of $88-$91. This morning Caterpillar said April dealer sales fell 9% worldwide, including a 20% drop in Asia/Pacific and 18% drop in North America. Latin America was a bright spot in April, rising 28%. Commenting analyst Andrew Casey called trends mixed and neutral for Caterpillar.

"Given continued modest trend improvement may be mostly offset by the North American machines trend step-down, we view this report as somewhat neutral for the stock," said Casey. "A big portion of the trend improvement appeared to be easier year-earlier comparisons. Going forward, CAT's production trends should start to be closer to dealer sales trends, given CAT management indicated dealers mostly completed their inventory reduction during Q1 2013 . . . We believe that investors likely expect weak earnings performance in the short term."

For an analyst ratings summary and ratings history on Caterpillar (NYSE: CAT) click here. For more ratings news on Caterpillar click here.

Shares of Caterpillar closed at $87.67 yesterday.

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