DA Davidson lowered its price target on Caterpillar to $685 from $882 and maintained a ‘Neutral’ rating, citing valuation concerns despite accelerating growth across all three segments, according to The Fly.

  • Freedom Broker lowered its CAT price target to $800 from $980 while maintaining a ‘Buy’ rating, The Fly reported.
  • According to Koyfin data, 12 out of 29 analysts covering the stock rate it ‘hold,’ while 16 rate it ‘buy’ or ‘strong buy’.
  • Caterpillar completed its acquisition of Fabick Cat, a longtime dealership with more than 100 years of customer relationships serving parts of Missouri and Illinois, all of Wisconsin, and Michigan’s Upper Peninsula.

Caterpillar Inc. (CAT) was in focus on Monday after DA Davidson and Freedom Broker lowered their price targets on the stock following its third-quarter results, while the company announced the completion of its Fabick Cat dealership acquisition.

According to The Fly, DA Davidson lowered its price target on Caterpillar to $685 from $882 and maintained a ‘Neutral’ rating, citing valuation concerns despite accelerating growth across all three segments. The firm noted that the stock trades at a 50% premium to its peer group.

CAT shares traded marginally lower at the time of writing.

Analysts Cut Caterpillar Price Targets

DA Davidson also noted that the company’s backlog increased 96% year-over-year, while end-user sales rose 20% in Construction and 36% in Power & Energy, according to The Fly.

Freedom Broker analyst Sergey Glinyanov lowered his price target to $800 from $980 while maintaining a ‘Buy’ rating, according to The Fly. The firm remains constructive on Caterpillar’s long-term fundamentals but is taking a more conservative approach to valuing the shares.

According to Koyfin data, 12 out of 29 analysts covering the stock rate it ‘hold,’ while 16 rate it ‘buy’ or ‘strong buy’. Their 12-month price target ranges from $575 to $1,150, with an average of $857.99.

Caterpillar Completes Fabick Cat Acquisition

Separately, Caterpillar on Monday announced that it had completed its acquisition of John Fabick Tractor Company, known as Fabick Cat, a longtime Cat dealer with more than 100 years of customer relationships across portions of Missouri and Illinois, all of Wisconsin, and Michigan’s Upper Peninsula. 

“Fabick customers have come to expect outstanding service and support, and completion of this acquisition ensures that commitment will continue,” Caterpillar Chairman and CEO Joe Creed said.

Following the acquisition, Caterpillar Senior Vice President Steve Ferguson was appointed CEO and Dealer Principal of Fabick. Ferguson joined Caterpillar in 1990 and has held roles across mining, power and energy, finance and operations. He most recently served as senior vice president of the Industrial Power Systems Division.

How Retail Views CAT

On Stocktwits, retail sentiment toward the stock remained in the ‘bullish’ territory over the past 24 hours, amid ‘high’ message volumes.

CAT shares have gained over 7.6% year-to-date.

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