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

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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

Sep 2015Deutsche BankMaintainsBuy
Sep 2015William BlairDowngradesOutperformMarket Perform
Sep 2015BMO CapitalMaintainsMarket Perform

View More Analyst Ratings for CAT
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Posted-In: Morgan Stanley Nicole DeblaseAnalyst Color Initiation Analyst Ratings


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