Morgan Stanley Initiates Coverage on Caterpillar (CAT)
Investment analysts at Morgan Stanley assumed coverage on shares of Caterpillar (NYSE:CAT) in a note issued to investors on Thursday, American Banking News reports. The firm set an “equal weight” rating and a $89.00 price target on the stock. Morgan Stanley’s price objective points to a potential upside of 6.54% from the stock’s previous close.
The analysts wrote, “We are skeptical on CAT’s 2014e outlook (although we agree that EPS will grow Y/Y), given the potential for mining end user demand to take another leg down, as growth projects roll off. China represents a headline risk, given the importance of the region on commodity demand. While we agree with the steps management is taking to rectify its inventory management issues, we believe this will be a long and arduous process. Ultimately, our valuation reflects muted growth in the coming years as Construction and Power segment improvement offsets continued Resource challenges.”
Caterpillar (NYSE:CAT) traded down 0.42% during mid-day trading on Thursday, hitting $83.19. 273,422 shares of the company’s stock traded hands. Caterpillar has a 52-week low of $79.49 and a 52-week high of $99.70. The stock’s 50-day moving average is $84.01 and its 200-day moving average is $85.69. The company has a market cap of $53.875 billion and a P/E ratio of 13.17.
Caterpillar (NYSE:CAT) last posted its quarterly earnings results on Wednesday, July 24th. The company reported $1.45 earnings per share for the quarter, missing the analysts’ consensus estimate of $1.71 by $0.26. The company had revenue of $14.62 billion for the quarter, compared to the consensus estimate of $15.03 billion. During the same quarter last year, the company posted $2.54 earnings per share. Caterpillar’s revenue was down 15.8% compared to the same quarter last year. Analysts expect that Caterpillar will post $6.30 EPS for the current fiscal year.
A number of other analysts have also recently weighed in on CAT. Analysts at William Blair reiterated an “outperform” rating on shares of Caterpillar (NYSE:CAT) in a research note to investors on Tuesday, August 27th. Separately, analysts at TheStreet reiterated a “buy” rating on shares of Caterpillar (NYSE:CAT) in a research note to investors on Monday, August 26th. Finally, analysts at Thomson Reuters/Verus upgraded shares of Caterpillar (NYSE:CAT) from a “sell” rating to a “hold” rating in a research note to investors on Monday, August 26th.
One research analyst has rated the stock with a sell rating, thirteen have given a hold rating and eleven have issued a buy rating to the stock. Caterpillar currently has an average rating of “Hold” and a consensus target price of $93.04.
Caterpillar Inc (NYSE:CAT) is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.
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