JP Morgan Points to Caterpillar China Excavator Sales Growth for July, Believes Could Indicate Chinese Market Recovery

A research note from JP Morgan Thursday morning highlighted Caterpillar

excavator sales in China have risen 14 percent YoY for the month of July, equating to five straight months of increasing sales in the country. JPMorgan suggested these consecutive gains may point to broad-based market recovery taking hold in China. The news of a China recovery is positive for CAT, which has fallen nearly 7 percent since the beginning of this year. JPMorgan maintains its Overweight rating and $96 price target on Caterpillar. With the stock up 1.2 percent to $83.44 at last check, the firm's price target implies potential upside of about 15 percent.