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Caterpillar stock downgraded ahead of earnings

Stockhouse Editorial
0 Comments| April 9, 2013

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(The Canadian Press) Heavy equipment maker Caterpillar Inc. (NYSE: CAT, Stock Forum) was in focus amid another downgrade two weeks before the company delivers its earnings. Barclays has cut its earnings forecast by eight per cent to $7.25 a share, while also reducing its 2014 estimate to $8.35 a share from $9.05 a share.

The Barclays move followed predictions of profit cuts by Goldman Sachs and Bank of America Merrill Lynch last week.

Caterpillar stock is down six per cent this year amid tepid economic growth in China and reduced spending by mining companies.

But its stock nudged up 2% Tuesday to US$85.11, leaving the company with a market cap of $55.7 billion, based on 655 million shares outstanding. The 52-week range is $109.77 and $78.25.



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