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Bank of America analysts upgraded Caterpillar (NYSE:CAT) to Buy from Neutral with a $295 per share price target (up from $217 per share).
The analysts highlighted 5 key reasons they are turning more bullish on CAT stock and why it may outperform going forward.
The analysts also believe that investors are likely to be surprised by CAT’s 2023 EPS results despite it most likely being a recession year.
“As macro headwinds ease in 6-9 months and investors look towards a new cycle, CAT’s multi-year growth prospects screen positive: capex is higher in a world that is effectively ‘short’ copper/oil/gas, long tail of fiscal stimulus drives construction project,” they said in a client note.
Caterpillar stock is up about 0.5% today.
