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UPDATE: Morgan Stanley Initiates Coverage on Caterpillar on 2014e Outlook Skepticism

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Caterpillar Posts Upbeat Q1 Earnings, Raises Earnings Forecast
Stock Market News for April 27, 2015 - Market News (Zacks)

In a report published Thursday, Morgan Stanley analyst Nicole DeBlase initiated coverage on Caterpillar (NYSE: CAT) with an Equal-Weight rating and $89.00 price target.

In the report, Morgan Stanley noted, “We are skeptical on CAT's 2014e outlook (although we agree that EPS will grow Y/Y), given the potential for mining end user demand to take another leg down, as growth projects roll off. China represents a headline risk, given the importance of the region on commodity demand. While we agree with the steps management is taking to rectify its inventory management issues, we believe this will be a long and arduous process. Ultimately, our valuation reflects muted growth in the coming years as Construction and Power segment improvement offsets continued Resource challenges.”

Caterpillar closed on Wednesday at $83.54.

Latest Ratings for CAT

DateFirmActionFromTo
Apr 2015BarclaysMaintainsOverweight
Feb 2015Argus ResearchDowngradesBuyHold
Jan 2015JefferiesMaintainsHold

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Posted-In: Morgan Stanley Nicole DeblaseAnalyst Color Initiation Analyst Ratings

 

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