Caterpillar CAT has been analyzed by 10 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.
The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 3 | 1 | 5 | 1 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 1 | 0 | 0 |
| 2M Ago | 1 | 1 | 2 | 1 | 0 |
| 3M Ago | 1 | 0 | 2 | 0 | 0 |
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $320.0, a high estimate of $390.00, and a low estimate of $245.00. This current average has increased by 16.58% from the previous average price target of $274.50.
Exploring Analyst Ratings: An In-Depth Overview
In examining recent analyst actions, we gain insights into how financial experts perceive Caterpillar. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Jamie Cook | Truist Securities | Announces | Buy | $390.00 | - |
| David Raso | Evercore ISI Group | Raises | In-Line | $338.00 | $321.00 |
| Timothy Thein | Citigroup | Raises | Neutral | $340.00 | $255.00 |
| Tami Zakaria | JP Morgan | Raises | Overweight | $385.00 | $345.00 |
| Mircea Dobre | Baird | Raises | Underperform | $257.00 | $210.00 |
| Seth Weber | Wells Fargo | Raises | Equal-Weight | $325.00 | $290.00 |
| Jerry Revich | Goldman Sachs | Raises | Buy | $357.00 | $274.00 |
| Angel Castillo | Morgan Stanley | Announces | Equal-Weight | $270.00 | - |
| Chad Dillard | Bernstein | Raises | Market Perform | $245.00 | $216.00 |
| Stanley Elliott | Stifel | Raises | Buy | $293.00 | $285.00 |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Caterpillar. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Caterpillar compared to the broader market.
- Price Targets: Analysts predict movements in price targets, offering estimates for Caterpillar's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.
For valuable insights into Caterpillar's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
Stay up to date on Caterpillar analyst ratings.
Get to Know Caterpillar Better
Caterpillar is the premier manufacturer of heavy equipment, power solutions, and locomotives. It is currently the world's largest manufacturer of heavy equipment with over 13% market share in 2021. The company is divided into four reportable segments: construction industries, resource industries, energy and transportation, and Caterpillar Financial Services. Its products are available through a dealer network that covers the globe with about 2,700 branches maintained by 160 dealers. Caterpillar Financial Services provides retail financing for machinery and engines to its customers, in addition to wholesale financing for dealers, which increases the likelihood of Caterpillar product sales.
Caterpillar: Financial Performance Dissected
Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.
Positive Revenue Trend: Examining Caterpillar's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 2.85% as of 31 December, 2023, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.
Net Margin: Caterpillar's net margin is impressive, surpassing industry averages. With a net margin of 15.68%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): Caterpillar's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 13.39%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Caterpillar's ROA stands out, surpassing industry averages. With an impressive ROA of 3.07%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.94, caution is advised due to increased financial risk.
The Significance of Analyst Ratings Explained
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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