Caterpillar (NYSE:CAT) news for Friday about a downgrade has CAT stock dipping lower.
The negative Caterpillar news comes from Bank of America Securities analyst Ross Gilardi. In his note to investors, Gilardi drops CAT stock from its previous “Buy” rating to a new “Neutral” rating.
The bad news for CAT stock doesn’t stop with just a downgrade. The Bank of America Securities analyst also drops his price target for the stock down to $115. The previous price target was sitting at $123 per share, reports Benzinga.
That new price target for CAT stock is 6.5% lower than the previous price target. It’s also worth pointing out that it is still 3.81% higher than the closing price of $110.78 per share for CAT stock on Thursday.
So why all the negative Caterpillar news? Gilardi believes that the company isn’t strong enough to offset the damages that it will feel due to the coronavirus from China. It also works with many major energy companies, which are also seeing a decline thanks to the virus and other issues.
Caterpillar is among the many companies that have suspended its fiscal 2020 outlook due to the coronavirus. The company said it will update investors during its next earnings report, which takes place on April 28. Until then, investors will just have to wait and see if CAT stock can bounce back from the world’s troubles.
CAT stock was down 3.3% as of Friday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.