Caterpillar's stock hits 3-month low, as CFRA turns bearish after earnings disappoint
Shares of Caterpillar Inc. tanked 1.9% toward a 3-month low in midday trading Friday, after CFRA analyst Elizabeth Vermillion turned bearish on the construction and mining equipment maker, after the company missed fourth-quarter sales expectations and provided a downbeat outlook. Vermillion also cut her stock price target to $120, which is 9.6% below current levels, from $156, citing the outlook for global sales to continue to weaken and the need for lower production to better match dealer and end-user demand. "North American construction markets will likely be weaker in 2020 than we previously anticipated," Vermillion wrote in a note to clients. "Within Construction Industries, we expect state and local infrastructure spending to remain solid, but lower dealer inventories will require lower production through most of 2020, offsetting spending benefits. Mining customers remain cautious with their capital expenditures." Caterpillar's stock has now shed 10.1% this month, while the Dow Jones Industrial Average has slipped 0.2%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.