Caterpillar downgraded to Underweight from Equal Weight at Morgan Stanley

Morgan Stanley analyst Angel Castillo downgraded Caterpillar to Underweight from Equal Weight with a price target of $332, down from $349. The firm sees mounting risks of de-stocking and limited offsets from mega projects and manufacturing. When combined with the stock’s year-to-date performance and a mid-cycle multiple on peak earnings, Caterpillar faces rising earnings revision risk, the analyst tells investors in a research note. Morgan Stanley says channel inventories in U.S. construction equipment may need to be de-stocked, leading to potential downturn.