Caterpillar: UBS upgrades to buy.
(CercleFinance.com) - On Monday, UBS upgraded its rating on Caterpillar from "neutral" to "buy," raising its target price from 116 dollars to 140 dollars.
According to the Swiss broker, the group is on the point of entering into an increasing profit cycle. It also deems that Caterpillar's cash situation is also largely undervalued: UBS expects Caterpillar to generate nearly 10 billion dollars in cash between 2018 and 2020.
The broker has also raised its 2017 and 2018 EPS estimates to 5.25 dollars and 7.5 dollars respectively, vs. 5.9 dollars and 5.9 dollars, respectively, with the group generating higher margins.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
According to the Swiss broker, the group is on the point of entering into an increasing profit cycle. It also deems that Caterpillar's cash situation is also largely undervalued: UBS expects Caterpillar to generate nearly 10 billion dollars in cash between 2018 and 2020.
The broker has also raised its 2017 and 2018 EPS estimates to 5.25 dollars and 7.5 dollars respectively, vs. 5.9 dollars and 5.9 dollars, respectively, with the group generating higher margins.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.