S&P Capital IQ Reiterates its BUY Rating on Caterpillar, Target Price Reduced

October 25 00:00 2011

New York, October 25 (RainbowNewsLine.com) – Analyst Michael Jaffe of S&P Capital IQ reiterates his BUY rating on the shares of Caterpillar (NYSE: CAT), while raising his estimates for the company. The target price has been reduced from $142 to $129.

Analyst Michael Jaffe, in a research report published yesterday mentions that the company reported its Q3 results substantially ahead of the estimates. Despite the economic challenges in developed nations, Caterpillar has reported 41% revenue growth for Q3 due to strong demand for almost all its products across the world, the analyst says. Current trends suggest that the company would enjoy demand growth in 2012, the analyst adds. The EPS estimates for 2011 and 2012 have been raised from $7.30 to $7.35 and from $9.10 to $9.20, respectively.