Damo downgraded Caterpillar (CAT.US) to “reduce holdings” and the risk of downgrading performance may increase

The Zhitong Finance App learned that previously, Morgan Stanley analysts downgraded Caterpillar's (CAT.US) investment rating from “hold and wait” to “reduce holdings,” and lowered Caterpillar's target price from $349 to $332 per share based on a 16-fold unchanged valuation of Caterpillar's 2025 earnings (not 2024 earnings expectations). The stock fell 2.5% before the market on Monday and 2% on Monday.

Morgan Stanley analyst Angel Castillo said in an October 14 report, “Although we have been cautious about non-residential construction activities in the US throughout the year and are increasingly cautious about Caterpillar's profit situation, we are now seeing more and more evidence that US construction equipment inventories may be declining.” “We think there is a greater risk that Caterpillar's performance will decline.”