Analyst Angel Castillo of Morgan Stanley maintained a Sell rating on Caterpillar (CAT – Research Report), retaining the price target of $300.00.
Angel Castillo has given his Sell rating due to a combination of factors impacting Caterpillar’s position in the market. The US construction equipment market has become increasingly competitive, with international manufacturers gaining traction, leading to a decline in market share for domestic companies like Caterpillar. This increased competition, coupled with the potential for weaker non-residential construction activity due to geopolitical uncertainties, poses significant risks to Caterpillar’s earnings.
Furthermore, while tariffs have been a topic of discussion, Castillo believes they are more likely to exacerbate existing market pressures rather than provide a substantial benefit to Caterpillar. The company’s current valuation appears overly optimistic given these challenges, suggesting a higher likelihood of negative surprises. As a result, Castillo maintains a cautious outlook on Caterpillar’s stock, reiterating a Sell rating and a price target of $300.
Based on the recent corporate insider activity of 84 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CAT in relation to earlier this year.
