UBS Upgrades Caterpillar (CAT) to Neutral on Balanced Risk/Reward

UBS analyst Steven Fisher upgraded Caterpillar (NYSE: CAT) from Sell to Neutral with a price target of $100.00 (from $110.00).

The analyst comments "A year ago, consensus estimates had CAT growing earnings 13% in 2020, which we thought was too optimistic. Current consensus estimates (before likely further revisions) reflect an 18% decline. We think market expectations are pricing in a steeper decline, and are now more realistic than a year ago when we double downgraded to Sell. With the recent move, we see risk/reward as closer to fairly balanced. We believe there is some further near term downside risk to the stock as estimates get cut, but we think that will be well understood by the time the company reports."

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 $100.20 yesterday.

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