Citi Slashes Caterpillar Price Target by $20

Following a move last week by Jefferies, Citi Research has slashed Caterpillar’s CAT price target from $110 to $90 – still a premium on today’s price. By comparison, Jefferies price target is at $85. The stock is currently trading at $83.50, down 0.5 percent on the day.

Recently, Caterpillar has begun cutting jobs, announcing earlier this month it would close plants in Decatur and East Peoria with 200 employees. In addition, the company will decide in March whether to offshore jobs from Joliet to Mexico.

Apparently, the analysts aren’t convinced these cost-cutting maneuvers will amount to meaningful progress for the stock. Neither are shareholders, who have sold the stock off by 18 percent since its November highs.