Bank of America Maintains Neutral Rating and $113 PT on Caterpillar

A report from Bank of America reiterates its Neutral rating and $113 price target on Caterpillar (NYSE: CAT).

The report states, “CAT (along with Komatsu) will be one of the long-term players with non-local brands in the China market, in our opinion. CAT's strategy of significant vertical integration in China should give it a competitive advantage relative to other competitors due to a short logistical supply chain; the ability to source key components in RMB rather than the Japanese ¥; and, the ability to scale capacity up or down rather than depending on suppliers to do so.”

CAT closed yesterday at $91.12.