Zacks Reaffirms Outperform Rating for Caterpillar (CAT)
Caterpillar (NYSE:CAT)‘s stock had its “outperform” rating restated by Zacks in a note issued to investors on Tuesday. They currently have a $130.00 price objective on the stock. Zacks‘s target price indicates a potential upside of 20.40% from the company’s current price.
Zacks’ analyst wrote, “We have maintained our Outperform recommendation on Caterpillar with a target price of $130. Caterpillar’s second-quarter earnings per share increased 17% to $1.69 as the company’s incessant efforts to reduce costs mitigated the effect of lower mining-related sales on its profits largely. Caterpillar trimmed its 2014 revenue guidance to a range of $54 to $56 billion but increased its earnings per share guidance to $6.20. Caterpillar will benefit from the recovery in the U.S. construction sector and the macroeconomic stabilization in Europe, both helping to mitigate the impact of a weak mining sector. Furthermore, the share repurchases will provide support to the stock.”
Caterpillar (NYSE:CAT) traded up 0.18% during mid-day trading on Tuesday, hitting $108.161. 1,386,279 shares of the company’s stock traded hands. Caterpillar has a 1-year low of $81.46 and a 1-year high of $111.46. The stock has a 50-day moving average of $106.4 and a 200-day moving average of $103.3. The company has a market cap of $67.908 billion and a P/E ratio of 18.02.
Caterpillar (NYSE:CAT) last released its earnings data on Thursday, July 24th. The company reported $1.69 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.52 by $0.17. The company had revenue of $14.15 billion for the quarter, compared to the consensus estimate of $14.46 billion. During the same quarter in the previous year, the company posted $1.45 earnings per share. The company’s revenue for the quarter was down 3.2% on a year-over-year basis. On average, analysts predict that Caterpillar will post $6.28 earnings per share for the current fiscal year.
CAT has been the subject of a number of other recent research reports. Analysts at ISI Group upgraded shares of Caterpillar from a “neutral” rating to a “buy” rating in a research note on Thursday, August 7th. They now have a $113.00 price target on the stock, up previously from $110.00. Separately, analysts at Tigress Financial upgraded shares of Caterpillar from an “underperform” rating to a “neutral” rating in a research note on Wednesday, July 30th. Finally, analysts at Raymond James reiterated a “market perform” rating on shares of Caterpillar in a research note on Friday, July 25th. They now have a $110.00 price target on the stock, up previously from $105.00. Thirteen equities research analysts have rated the stock with a hold rating and nine have given a buy rating to the company. The company currently has a consensus rating of “Hold” and an average target price of $102.11.
Caterpillar Inc (NYSE:CAT) is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.
To view Zacks’ full report, visit Zacks’ official website.