Goldman Sachs Adds Caterpillar (CAT) to Conviction Buy List

Goldman Sachs added Caterpillar (NYSE: CAT) to its Conviction Buy List with a price target of $118, suggesting 23% upside.

The firm sees incremental margins accelerating in 2012 and sees the company's commodity reinvestment businesses benefiting from declining resource quality. Goldman also noted that locomotive capex is sharply accelerating and said the "cyclical outlook is more balanced than the market is discounting for Construction Industries as S America is in the midst of a fleet and infrastructure build-out and N America is early in the cyclical recovery."

The firm raised estimates and sees 5% upside to 2012 EPS consensus.

Goldman now sees FY11 EPS of $6.94, versus its prior view of $6.80, sees FY12 of $9.50 versus $8.90 and FY13 of $10.55 versus $9.50.

For an analyst ratings summary and ratings history on Caterpillar click here. For more ratings news on Caterpillar click here.

Shares of Caterpillar closed at $96.13 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Northland Upgrades Astera Labs (ALAB) to Outperform, 'Right Time, Customers, and Products'
• Freedom Broker Upgrades PrimeEnergy Resource (PNRG) to Hold
• Johnson Rice Upgrades Magnolia Oil & Gas Corp. (MGY) to Accumulate