Caterpillar Rating Reiterated by Morgan Stanley (CAT)
Caterpillar (NYSE:CAT)‘s stock had its “equal weight” rating reiterated by equities researchers at Morgan Stanley in a research report issued on Tuesday, Analyst Ratings Network reports. They currently have a $86.00 target price on the stock. Morgan Stanley’s target price would suggest a potential downside of 5.95% from the stock’s previous close.
The analysts wrote, “We forecast $1.23 EPS, $0.05 below cons,” the report noted. “This is predicated on $12.95bn MP&S revenue ($13.71bn total), down 16% Y/Y, largely due to continued challenges in Resource. Here, we forecast a 50% Y/Y revenue decline as we believe that inventory remains too high in Asia Pac, augmenting weak end user demand. We forecast 8% growth in Construction on the back of improving end market commentary. In Power Systems, we project 4% growth – below management guidance, but dealer stats were -5% for 3m/3 Nov. At the MP&S margin line, we forecast 260bps Y/Y expansion to 12.1%, as CAT’s margins were negatively impacted by sharp inventory reductions during 4Q12.”
Caterpillar (NYSE:CAT) traded down 1.11% during mid-day trading on Tuesday, hitting $90.426. The stock had a trading volume of 2,031,380 shares. Caterpillar has a 52 week low of $79.49 and a 52 week high of $99.70. The stock has a 50-day moving average of $88.30 and a 200-day moving average of $85.45. The company has a market cap of $57.543 billion and a price-to-earnings ratio of 17.43.
Caterpillar (NYSE:CAT) last announced its earnings results on Wednesday, October 23rd. The company reported $1.45 EPS for the quarter, missing the Thomson Reuters consensus estimate of $1.71 by $0.26. The company had revenue of $13.42 billion for the quarter, compared to the consensus estimate of $14.49 billion. During the same quarter last year, the company posted $2.54 earnings per share. Caterpillar’s revenue was down 18.4% compared to the same quarter last year. Analysts expect that Caterpillar will post $5.50 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Thursday, February 20th. Shareholders of record on Tuesday, January 21st will be paid a dividend of 0.60 per share. This represents a $2.40 annualized dividend and a dividend yield of 2.62%. The ex-dividend date is Thursday, January 16th.
Other equities research analysts have also recently issued reports about the stock. Analysts at TheStreet reiterated a “buy” rating on shares of Caterpillar in a research note to investors on Tuesday. Separately, analysts at Zacks upgraded shares of Caterpillar from an “underperform” rating to a “neutral” rating in a research note to investors on Friday. They now have a $97.00 price target on the stock. Finally, analysts at Barclays raised their price target on shares of Caterpillar from $95.00 to $104.00 in a research note to investors on Monday, January 13th. They now have an “overweight” rating on the stock. Sixteen research analysts have rated the stock with a hold rating and eight have assigned a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and a consensus price target of $91.67.
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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