UBS Analyst Turns Bullish On Caterpillar - Read Why - Caterpillar (NYSE:CAT)

UBS analyst Steven Fisher upgraded Caterpillar Inc. CAT to Buy from Neutral and raised the price target to $235 (an upside of 15%) from $232.
Fisher thinks sentiment on the shares will improve as margins inflect and surprise to the upside during this upcycle. All three of Caterpillar's segments will grow over the next 2-3 years, and falling input costs and the removal of headwinds will create a "strong margin tailwind" for the company during the upcycle, leading to outsized margin performance.
He thinks "the coming inflection" is not being appropriately recognized by investors.
Credit Suisse analyst Jamie Cook raised the price target to $240 (an upside of 17.7%) from $239 and maintained an Outperform rating.
Morgan Stanley analyst Courtney Yakavonis raised the price target to $166 (a downside of 18%) from $165 and maintained an Underweight rating on the shares.
Price Action: CAT shares closed lower by 0.09% at $203.91 on Friday.

UBS Analyst Turns Bullish On Caterpillar - Read Why