Goldman Sachs Upgrades Caterpillar (CAT) to Conviction Buy

Goldman Sachs upgraded Caterpillar (NYSE: CAT) from Buy to Conviction Buy with a price target of $120.00.

Analyst Jerry Revich is bullish on four key points: (1) improving mid-cycle EPS, (2) the company's exposure to under-invested machinery markets in what he calls the early stages of a recovery, (3) management's strategy for improving returns on capital, and (4) the underweight exposure taken by mutual funds. His FY 2017 EPS estimate stands at $3.96, FY 2018 EPS at $4.78, and FY 2019 EPS at $5.66. He maintains his $120 PT.

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 $92.27 yesterday.

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