Caterpillar News: Why CAT Stock Is Crumbling Today

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Caterpillar news concerning a downgrade for the company’s stock is dragging CAT stock down on Tuesday.

Caterpillar News: Why CAT Stock Is Crumbling Today

The downgrade for Caterpillar (NYSE:CAT) stock comes from UBS analyst Steven Fisher. This downgrade now has the analyst with a “Sell” rating for CAT stock. Fisher’s new rating for the stock has it skipping past a “Neutral” rating from its previous “Buy” rating.

It’s also worth noting that this update from UBS analyst contains other bad Caterpillar news. Among this is a drop to the price target for CAT stock. The new price target that Fisher has for CAT stock is $125. The previous price target was $154.

The new price target for CAT stock is below its closing price of $141.41 on Monday. To be more precise, it represents an almost 12% decrease from the stock’s previous closing price, reports MarketWatch.

So why exactly is UBS analyst Steven Fisher making such a drastic change to his stance on CAT stock? He believes that the company will reach its peak in 2019, which he says will result in earnings per share for 2020 coming in at $11.45.

That matters because this isn’t what the rest of Wall Street is expecting from CAT stock. The current estimates have the company continuing to report growing earnings per share in 2020. If Fisher is right about this, it will only be more bad Caterpillar news for the stock, Benzinga notes.

CAT stock was down 2% as of noon Tuesday.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2019/02/caterpillar-news-downgrade-hits-stock/.

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