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UPDATE: Goldman Sachs Downgrades Caterpillar to Neutral on Lack of Upside

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September Stock Considerations (Seeking Alpha)

In a report published Wednesday, Goldman Sachs analyst Jerry Revich downgraded the rating on Caterpillar (NYSE: CAT) from Buy to Neutral, and lowered the price target from $116.00 to $101.00.

In the report, Revich noted, “We downgrade CAT to Neutral as we reduce our price target by 13% and our estimates by 11%. We are constructive on CAT's leading returns, structurally improved Construction Equipment margins, underappreciated margin tailwind from a weak Yen, and a solid cyclical outlook for global Construction Equipment and Rail capex (40% of sales). However, in an oversupplied commodity environment we no longer see upside to consensus earnings expectations, prompting the downgrade to Neutral.”

Caterpillar closed on Tuesday at $86.64.

Latest Ratings for CAT

DateFirmActionFromTo
Jul 2015CitigroupMaintainsNeutral
Jul 2015Stifel NicolausMaintainsBuy
Jun 2015Societe GeneraleInitiates Coverage onBuy

View More Analyst Ratings for CAT
View the Latest Analyst Ratings

Posted-In: Goldman SachsAnalyst Color Downgrades Analyst Ratings

 

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