J.P. Morgan analyst Tami Zakaria maintains $Caterpillar (CAT.US)$ with a buy rating, and adjusts the target price from $435 to $500.
According to TipRanks data, the analyst has a success rate of 69.2% and a total average return of 19.3% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Caterpillar (CAT.US)$'s main analysts recently are as follows:
An analyst has expressed a positive outlook on Caterpillar, anticipating that the company will achieve earnings growth this year despite a downturn in a third of its end markets. It is suggested that the company's earnings by 2025 will likely be stable or slightly increased, followed by a return to growth in 2026, indicating that the current trading multiple may be close to a cyclical low.
The company is facing escalating risks of inventory reduction, with little compensation anticipated from major projects and manufacturing. Coupled with its performance since the beginning of the year and a mid-cycle valuation applied to peak profits, there is an increasing likelihood of earnings revisions. It has been suggested that channel inventories in the U.S. construction equipment sector may require de-stocking, which could signal an impending downturn.
Note:
TipRanks, an independent third party, provides analysis data from financial analysts and calculates the Average Returns and Success Rates of the analysts' recommendations. The information presented is not an investment recommendation and is intended for informational purposes only.
Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
TipRanks provides a ranking of each analyst up to 5 stars, which is representative of all recommendations from the analyst. An analyst's past performance is evaluated on a scale of 1 to 5 stars, with more stars indicating better performance. The star level is determined by his/her total success rate and average return.
