Caterpillar (CAT) Selling Off Likely to be Short Lived - Wolfe Research

Wolfe Research analyst Greg Badishkanian reiterated an Outperform rating and $265.00 price target on Caterpillar (NYSE: CAT) after shares of Caterpillar (CAT) traded lower following Q2 sales results that came in modestly lighter than buy side expectations (vs. Q1 total sales growth +12%). That said, operating margins and earnings growth performed better.

The analyst stated "CAT continues to grapple with supply chain headwinds and noted pricing will be used as a lever to offset higher input costs over the balance of the year. We continue to monitor trends closely and still expect elevated top-line gains to extend well into 2022." Looking at history, the analyst sees this being resolved in the coming quarters, stating "We note retail sales to end users grew +20% for machinery worldwide with North America up +32% following several quarters of declines. Our work suggests once trends turn positive, we should see an extended run of sustained growth for CAT and potential dealer re-stocking."

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 $206.75 yesterday.

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