TD Cowen Remains Positive on Caterpillar (CAT) Following 'strong results' in Earnings Report
TD Cowen analyst Matt Elkott reiterated an Outperform rating and $300.00 price target on Caterpillar (NYSE: CAT).
The analyst comments "Solid 4Q beat to consensus on EPS and margin. Order backlog declined 2% sequentially, better than the mid-single-digit decline we believed the Street had expected. FY24 sales expected to remain largely flat, with price modestly offsetting costs. No big change to dealer inventory in 2024 vs a build in 2023. Margin and FCF target ranges raised. Strong results. Outlook looks good in light of the fact that 2024 is a broader machinery down cycle. Demand remains healthy in most end markets. We note that CAT's biggest end market is non-residential construction, followed by mining, oil and gas, power generation, and residential construction. They guided for revenue in line with 2023, with modestly positive price realization. They raised their margin target range by 100bps and said they would be in the top half of the new range in 2024. They raised the free cash flow target range and also said they would be in the top half of it in 24."
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Shares of Caterpillar closed at $315.09 yesterday.