UPDATE: Goldman Sachs Raises PT on Caterpillar to $111

Goldman Sachs is out with its report today on Caterpillar

, raising its PT from $98 to $111. In its report, Goldman Sachs writes, "We raise our 12-month price target to $111 from $98, based on 7.8X 2012E EV/EBITDA (12.5X P/E) up from 7.6X prior due to a lower risk premium. CAT is trading at 6.8X 2012E EV/EBITDA, a 5% premium versus Machinery peers." Goldman Sachs maintains Buy on CAT. At the time of posting, shares of CAT were trading at $90.58, down 1.38% from Monday's close.