Market Overview

Bank Of America Mixed On Caterpillar Amid Concerns Of Declining Demand For Construction Equipment

Share:

Bank of America issued a company update on Caterpillar Inc. (NYSE: CAT) that said while its lean manufacturing initiatives and free cash flow are positive, there concerns over demand trends for their equipment. Bank of America rates Caterpillar as Neutral with an $85 price target.

Analysts Ross Gilardi and Michael Feigner wrote seven key takeaways following a conference with Caterpillar executives:

  • 1. Caterpillar will not hesitate to make a $1-2 billion acquisition in the areas of oil/gas, rail services, and marine.
  • 2. While North America construction is becoming more competitive, Caterpillar sees dealer restocking and pockets of better infrastructure spending in the upcoming months.
  • 3. There are little to no signs of mining aftermarket recovery.
  • 4. Caterpillar believes that it has the strongest dealer network in the industry.
  • 5. Caterpillar will remain selective on capacity closures.
  • 6. States that are high in producing energy account for a large portion of construction activity.
  • 7. Gas compression revenue trends are stable for 2015.

Shares of Caterpillar recently traded at $79.13, up 0.87 percent.

Latest Ratings for CAT

DateFirmActionFromTo
Jan 2021Vertical ResearchInitiates Coverage OnBuy
Dec 2020Morgan StanleyMaintainsUnderweight
Oct 2020StifelMaintainsBuy

View More Analyst Ratings for CAT
View the Latest Analyst Ratings

 

Related Articles (CAT)

View Comments and Join the Discussion!

Posted-In: Bank of America Michael Feigner Ross GilardiAnalyst Color Analyst Ratings

Latest Ratings

StockFirmActionPT
FJP MorganUpgrades14.0
DMTKOppenheimerInitiates Coverage On53.0
DHIJanney CapitalInitiates Coverage On
CSXStifelDowngrades92.0
BYNDLongbow ResearchInitiates Coverage On
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com