JPMorgan analyst Tami Zakaria has revised the price target for Caterpillar (CAT, Financial), reducing it from $490 to $380. Despite this adjustment, the firm maintains an Overweight rating for the construction equipment manufacturer. This update is part of a broader review for the first quarter of 2023.
The revision signals concerns over a potential increase in recession risks, which could negatively impact future outlooks for the sector. There was some anticipation of pre-buying activity in the first quarter in response to upcoming tariff announcements. However, companies might either scale down their full-year forecasts or withdraw guidance altogether, according to the analyst's insights shared with investors. The initially expected acceleration during the year's second half appears uncertain amid these concerns.
The bank's overall strategy reflects a cautious stance, cutting estimates and price targets for several firms in the construction equipment industry due to these economic uncertainties. The developments suggest that investors should remain vigilant and adjust their expectations for Caterpillar and the sector accordingly.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 21 analysts, the average target price for Caterpillar Inc (CAT, Financial) is $361.80 with a high estimate of $427.41 and a low estimate of $243.00. The average target implies an upside of 23.29% from the current price of $293.45. More detailed estimate data can be found on the Caterpillar Inc (CAT) Forecast page.
Based on the consensus recommendation from 28 brokerage firms, Caterpillar Inc's (CAT, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Caterpillar Inc (CAT, Financial) in one year is $300.50, suggesting a upside of 2.4% from the current price of $293.45. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Caterpillar Inc (CAT) Summary page.
