Caterpillar (CAT) Trades Up 3.28% On The Day, Future Looks Strong
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Caterpillar (NYSE: CAT) is currently outperforming the market today being up 3.28% on the day.
Yesterday Jefferies raised their price target on the stock to $120 from $110 after attending their investor meeting in Texas, stating that they were coming away from the meeting feeling more confident in their growth trajectory. They feel that their estimates may still be "too low."
During the meeting management commented that both the North American and European markets are experiencing strong replacement demand as a result of aging fleets, this trend is expected to continue. Both markets are currently only performing at 50-60% their past peaks.
In their 4Q CAT experienced 22% incremental margins with 19% in machinery and 32% in engines, but management stated that it was more like 30% once you subtract one time items and acquisitions.
The company raised their 2011 revenue guidance to more than $50 billion, which includes and estimates $3 billion in finance revenue. They have their full year EPS estimate set at ~$6.00 and are anticipating a 28% tax rate.
Yesterday Jefferies raised their price target on the stock to $120 from $110 after attending their investor meeting in Texas, stating that they were coming away from the meeting feeling more confident in their growth trajectory. They feel that their estimates may still be "too low."
During the meeting management commented that both the North American and European markets are experiencing strong replacement demand as a result of aging fleets, this trend is expected to continue. Both markets are currently only performing at 50-60% their past peaks.
In their 4Q CAT experienced 22% incremental margins with 19% in machinery and 32% in engines, but management stated that it was more like 30% once you subtract one time items and acquisitions.
The company raised their 2011 revenue guidance to more than $50 billion, which includes and estimates $3 billion in finance revenue. They have their full year EPS estimate set at ~$6.00 and are anticipating a 28% tax rate.
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