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The bad news for CAT shares does not end with a downgrade. Bank of America Securities analysts are also dropping their stock price target to $ 115. The previous price target was $ 123 per share, Benzinga reports.
The new price target for CAT shares is 6.5% lower than the previous price target. It is also worth noting that it is still 3.81% higher than the closing price of $ 110.78 per share for the CAT share on Thursday.
So why all the negative Caterpillar news? Gilardi believes that the company is not strong enough to compensate for the damage it will feel due to coronavirus from China. It also works with many large energy companies, which are also seeing a decline due to the virus and other problems.
Caterpillar is among the many companies that have suspended their 2020 budget prospects due to the coronavirus. The company said it will update investors during its next earnings report, which takes place on April 28. Until then, investors just have to wait and see if CAT stocks can bounce back from the world’s problems.
The CAT share fell by 3.3% as of Friday afternoon.
At the time of writing, William White had no position in any of the above securities.
Article printed from InvestorPlace Media, https://investorplace.com/2020/03/caterpillar-news-drops-cat-stock-on-downgrade/.
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