Citi raised the firm’s price target on Caterpillar (CAT) to $460 from $435 and keeps a Buy rating on the shares. The firm also opened a “90-day negative catalyst watch” on the shares. It sees downside risk to second half of 2024 and 2025 estimates. The long-term fundamental view remains intact, but the stock “has gotten a bit ahead of itself” in response to Fed cuts and China stimulus, and solid commodity prices, all of which benefit Caterpillar at a lag, the analyst tells investors in a research note. Citi says its analysis of previous Fed cutting cycles suggests conditions for the company in the U.S. “could get worse before they get better.”
Invest with Confidence:
- Follow TipRanks' Top Wall Street Analysts to uncover their success rate and average return.
- Join thousands of data-driven investors – Build your Smart Portfolio for personalized insights.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on CAT:
- Caterpillar named Top Pick at Jefferies, price target raised to $475 from $455
- Buy/Sell: Wall Street’s top 10 stock calls this week
- Charter to acquire Liberty Broadband, Spotify reports Q3 beat: Morning Buzz
- Starbucks, Spotify downgraded: Wall Street’s top analyst calls
- Caterpillar downgraded to Underperform from In Line at Evercore ISI