In the preceding three months, 10 analysts have released ratings for Caterpillar (NYSE:CAT), presenting a wide array of perspectives from bullish to bearish.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 5 | 1 | 0 | 3 | 1 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 1 | 0 |
| 2M Ago | 3 | 1 | 0 | 2 | 1 |
| 3M Ago | 1 | 0 | 0 | 0 | 0 |
The 12-month price targets, analyzed by analysts, offer insights with an average target of $403.7, a high estimate of $500.00, and a low estimate of $295.00. Witnessing a positive shift, the current average has risen by 7.83% from the previous average price target of $374.40.
Analyzing Analyst Ratings: A Detailed Breakdown
The perception of Caterpillar by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Stephen Volkmann | Jefferies | Raises | Buy | $475.00 | $455.00 |
| David Raso | Evercore ISI Group | Raises | Underperform | $365.00 | $321.00 |
| Steven Fisher | UBS | Raises | Sell | $295.00 | $285.00 |
| Kyle Menges | Citigroup | Lowers | Buy | $435.00 | $445.00 |
| Mircea Dobre | Baird | Raises | Underperform | $300.00 | $299.00 |
| Tami Zakaria | JP Morgan | Raises | Overweight | $500.00 | $435.00 |
| Angel Castillo | Morgan Stanley | Lowers | Underweight | $332.00 | $349.00 |
| Kyle Menges | Citigroup | Raises | Buy | $445.00 | $380.00 |
| Jamie Cook | Truist Securities | Raises | Buy | $456.00 | $399.00 |
| Michael Feniger | B of A Securities | Raises | Buy | $434.00 | $376.00 |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Caterpillar. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Caterpillar compared to the broader market.
- Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Caterpillar's stock. This comparison reveals trends in analysts' expectations over time.
Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Caterpillar's market standing. Stay informed and make data-driven decisions with our Ratings Table.
Stay up to date on Caterpillar analyst ratings.
Get to Know Caterpillar Better
Caterpillar is the top manufacturer of heavy equipment, power solutions, and locomotives. It is currently the world's largest manufacturer of heavy equipment. The company is divided into four reportable segments: construction industries, resource industries, energy and transportation, and Cat Financial. Its products are available through a dealer network that covers the globe with about 2,700 branches maintained by 160 dealers. Cat Financial 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.
Financial Milestones: Caterpillar's Journey
Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
Revenue Growth: Caterpillar's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2024, the company experienced a revenue decline of approximately -4.19%. This indicates a decrease in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: Caterpillar's net margin excels beyond industry benchmarks, reaching 15.3%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): Caterpillar's ROE stands out, surpassing industry averages. With an impressive ROE of 13.49%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Caterpillar's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 2.91%, the company showcases efficient use of assets and strong financial health.
Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.95, caution is advised due to increased financial risk.
The Core of Analyst Ratings: What Every Investor Should Know
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.
