BoA upgrades Caterpillar to buy following US-China trade war ceasefire
- US Market
- 3 months ago
Caterpillar’s shares have been upgraded to buy by Bank of America Merrill Lynch, it has also increased its 12-month forecast from its previous $140 to $163.
Premarket shares are up 4% or $141.50 per share.
The positive sentiment comes after the talks on a trade war ceasefire between Washington and Beijing.
Bank Of America analyst Rod Gilardi stared in a message to investors, “we are still late in the cycle, but two key macro developments lead us to upgrade CAT at 10.9x 2019E EPS and an 8% FCF yield. First, Fed Chairman Jerome Powell seemed less hawkish last week on the future path of interest rate increases, and two, US-China agreed to a temporary cease fire on additional US tariff increases.”
Source: Smart Trend Team