BMO Capital upgraded Caterpillar (NYSE: CAT) from Market Perform to Outperform with a price target of $125.00 (from $110.00).

Analyst Joel Tiss believes management will reveal a 5-year plan at its September investor event which should show an ability to generate earnings power that may likely approach Tiss' $16 EPS forecast. He believes the stock could trade toward 13-14x EPS noting that nearly all valuations have been rising for industrial companies over the past several years.

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 $106.59 Friday.