Caterpillar stock bounces off 8-month low after Cowen says buy ahead of first 'megacycle' in 14 years

1 week ago 10

Shares of Caterpillar Inc. CAT, -0.52% rallied 1.2% successful premarket trading, to bounce of an eight-month closing debased successful the erstwhile session, aft the operation and mining instrumentality got a bullish endorsement from Cowen expert Matt Elkott, who said helium believes the adjacent "megacycle" is underway. Elkott started sum of Caterpillar's banal with an outperform standing and terms people of $241, which implies 28% upside from Wednesday's closing price. Elkott expects Caterpillar to amusement gross growth, gross and operating borderline enlargement and earnings-per-share increases for 3 consecutive years, the archetypal play of "megacycle" maturation the institution has enjoyed successful 14 years, and lone the 2nd successful modern history. "We spot imaginable for incremental gross opportunities of $35 cardinal for [Caterpillar] from autonomous solutions successful the adjacent 10 years," Elkott wrote successful a enactment to clients. "We estimation that astatine slightest 75% of CAT's markets volition enactment to trim emissions. We expect beardown maturation successful services, organically and via acquisition." The stock, which closed Wednesday astatine the lowest terms since Feb. 1, has mislaid 10.7% implicit the past 3 months portion the Dow Jones Industrial Average DJIA, -0.00% has slipped 1.6%.

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