Jefferies analyst Stephen Volkmann maintains $Caterpillar (CAT.US)$ with a buy rating, and adjusts the target price from $440 to $455.
According to TipRanks data, the analyst has a success rate of 67.8% and a total average return of 19.5% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Caterpillar (CAT.US)$'s main analysts recently are as follows:
The sentiment following the MINExpo event last week was interpreted as cautiously optimistic, as reflected through conversations with original equipment manufacturers, dealers, and industry experts. For Caterpillar, it is anticipated that the Resource Industries division will likely experience limited variation in the short term, with a greater potential for earnings growth in the long term, which is expected to support a forthcoming higher earnings per share cycle. The prevailing opinion is to favor 'Miners over Farmers' after the event, with a preference for Caterpillar within the Large Cap Machinery sector, based on the belief that the company's earnings per share will remain at current elevated levels, supported by monetary policy adjustments and economic stimulus efforts.
Caterpillar's significant leverage to commodities has been noted as a potential influencer of both its stock performance and fundamental business operations, particularly within its Mining and Energy segments which are suggested to be near low points. Anticipated demands, projected capital expenditures in the mining sector, and growth trends related to the mining's role in the global energy shift are seen as factors that could potentially lead to a doubling of Caterpillar's Resource Industries revenue, with an additional impact on its earnings per share.
Note:
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