Caterpillar: Jefferies cuts its estimates

(CercleFinance.com) - Jefferies said it has cut its forecasts on maker of US construction and mining machine maker Caterpillar to reflect its lower expectations for mining and oil & gas industries into 2019.


In a note sent to clients, Jefferies says lower commodity trends tend to drive down revenues in construction, resource and energy and transportation - the main markets of the Perioa, Illinois-based group.

"While Caterpillar's valuation looks attractive, we believe estimates need to come down to de-risk the shares," the broker writes in the report.

However, all is not lost - Jefferies maintains its "hold" rating on the stock, along with a target price of 130 dollars.



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