Goldman downgrades Caterpillar, citing weakness in China business amid trade war

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Goldman Sachs downgraded Caterpillar and said it saw production cuts in the North America and China construction equipment markets due to the ongoing U.S.-China trade.

Goldman Sachs lowered its price target on Caterpillar to $130 from $156

"Visibility on operating profit growth for CAT off of 2019 levels is low, in our view, driving balanced risk-reward for the stock," Goldman Sachs analyst Jerry Revich said.shares were downgraded by Goldman Sachs on Thursday, with the brokerage saying it could no longer justify its "buy" rating on the stock due to headwinds in the China and North America construction equipment markets.

The firm downgraded the stock to "neutral" from "buy," and cut its price target to $130 a share from $156 per share. Shares of Caterpillar are down just over 1% to $120.78 in premarket trading. "For the first time since we upgraded CAT to Buy in October 2016, we expect EBIT to decline in FY2 driven by meaningful production cuts in North America and China construction equipment, more than offsetting our forecasts for a Resource Industries recovery," Goldman Sachs analyst Jerry Revich said.

"Visibility on operating profit growth for CAT off of 2019 levels is low, in our view, driving balanced risk-reward for the stock," he said.

 

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CRAMER has been snapping it up!!!!! He can buy more at lower price!!! thx GS!!!

Whether it’s due to Trump losing the election or a deal being struck, this trade war is (hopefully) a temporary event. I will be cautiously nibbling for years down the road.

If $CAT drops below that support at $119, next target is the 200sma around $110.

they might call it a trade war in public but behind the scenes in getting tooled up and will stand guard at our local artisan bakery so the Chinese can’t take our bread - don’t be scared of the guns, they are to defend the custard

Caterpillar will no longer metamorphosis financially into M Butterfly.. - Goldman downgrades Caterpillar, citing weakness in China business amid trade war (link:

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