UPDATE: JPMorgan Downgrades Caterpillar to Neutral, Lowers PT

In a report published Monday JPMorgan downgraded Caterpillar Inc.

from Overweight to Neutral, and reduced price target from $109 to $90. JPMorgan noted, "We have been Overweight CAT since April 2009 on the thesis that increased demand for hard commodities, supported by positive global GDP, and the beginning of a U.S. construction cycle uniquely favored CAT's business mix. While these catalysts remain in place we cannot overlook the continued pressure the mining sector is facing to reduce capex, as well as the reelection of President Obama and the impact this could have on the U.S. coal and energy sectors. These, coupled with CAT's company specific inventory issues, make it difficult to justify why the stock should outperform its peers on a relative basis in the near term, and as a result we believe it is prudent to revise our rating from Overweight to Neutral." Caterpillar closed at $84.95 on Friday.