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Morgan Stanley Feels Cautious on Caterpillar Ahead of 1Q14 Earnings

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In a report published Thursday, Morgan Stanley analyst Nicole DeBlase reiterated an Equal-Weight rating and $96.00 price target on Caterpillar (NYSE: CAT).

In the report, Morgan Stanley noted, “We are cautious 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 and inventory remains an issue. 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, and inventory issues are likely to bleed into 2014e. Ultimately, our valuation reflects muted growth in the coming years as Construction and E&T segment improvement offsets continued Resource challenges.”

Caterpillar closed on Wednesday at $102.93.

Latest Ratings for CAT

DateFirmActionFromTo
Apr 2016Argus ResearchUpgradesHoldBuy
Apr 2016Goldman SachsUpgradesSellNeutral
Apr 2016Vertical ResearchUpgradesHoldBuy

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

 

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