Caterpillar Gets a Goldman Sachs Endorsement

By Kim Khan

Investing.com – Caterpillar (NYSE:) fell Thursday, but the stock was one of the few components showing a little resilience after a heavyweight Wall Street upgrade.

Shares were down 0.5% in morning trading, while the slumped 0.6%.

Goldman Sachs (NYSE:) upgraded the stock to buy from neutral today, raising its price target to $168 per share from $156 per share.

The heavy-equipment maker’s stock is showing an attractive risk-reward scenario, according to Goldman analyst Jerry Revich.

Factors that should help include “tightening U.S. construction equipment capacity utilization and dealer inventories and backlog approaching trough levels,” Revich wrote.

Shares of Caterpillar are down nearly 8% year to date, with selling pressure coming as the impact of Covid-19 on the Chinese economy and demand from the country becoming clearer.

Opinion of the stock on Wall Street is fairly split.

Among those covering Caterpillar there are 11 buy ratings, 12 neutrals and 3 sells, according to Investing.com.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.