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

In a report published Wednesday, Goldman Sachs analyst Jerry Revich downgraded the rating on Caterpillar

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.