Caterpillar (CAT) Receives a Hold from Oppenheimer

By Ryan Adsit

In a report released today, Noah Kaye from Oppenheimer maintained a Hold rating on Caterpillar (CATResearch Report). The company’s shares closed on Tuesday at $129.32.

Kaye commented:

“We recently met with Tom Bucklar, director of Hohulin, IR manager at CAT’s headquarters. Per our initiation, we view CAT’s external digital strategy—the result of a decade-long shift to focus on customer value creation—as an increasingly vital enabler of its market/price leadership and lever to reduce earnings volatility. Meanwhile, management remains generally positive on end-markets trajectory into FY19 and expects price to fairly offset cost increases (including tariffs). Previously discussed margin puts/takes could imply a conservative consensus outlook for FY19 operating leverage. We believe risk/reward on the shares remains challenging in the current market environment, but could see CAT as a leading potential beneficiary of a better-than-feared macro trade in 2019.”

According to, Kaye is a 4-star analyst with an average return of 3.0% and a 53.1% success rate. Kaye covers the Basic Materials sector, focusing on stocks such as Advanced Disposal Services Inc, Waste Connections Inc, and Republic Services.

Currently, the analyst consensus on Caterpillar is a Moderate Buy with an average price target of $157.82.

See today’s analyst top recommended stocks >>

Based on Caterpillar’s latest earnings release for the quarter ending September 30, the company reported a quarterly revenue of $13.51 billion and net profit of $1.73 billion. In comparison, last year the company earned revenue of $11.41 billion and had a net profit of $1.06 billion.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Caterpillar, Inc. engages in the manufacture of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. It operates through the following segments: Construction Industries, Resource Industries, Energy and Transportation, Financial Products, and All Other.