By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- Caterpillar Inc. and other industrials got a lift Tuesday after Morgan Stanley offered a brighter view of the company and the sector.
Saying it now sees "substantially more upside" for industrial stocks than the overall Standard & Poor's 500 Index (INDEX:SPX) , Morgan Stanley pointed to sharply rising orders and structural cost improvements as among the sector's underlying bullish factors. "In short, fundamentals have caught up and now surpass multiples that have contracted recently to highly attractive levels," Morgan Stanley analyst Scott Davis wrote in a note to clients.
The analyst also upgraded Caterpillar Inc. (NYSE:CAT) , a component of the Dow Jones Industrial Average (INDEX:INDU) , to overweight from underweight, hiking his price target on its shares to $70 from $51.
Leading gains on the Dow, shares of Caterpillar were up 4.8%.
Off the Dow, Caterpillar's rivals Cummins Inc. (NYSE:CMI) and Navistar International Corp. (NYSE:NAV) gained as well, up 3.2% and 2.9%, respectively.
Davis also upgraded Rockwell Automation Inc. (NYSE:ROK) and Ingersoll-Rand Plc (NYSE:IR) to equal weight from underweight.
Rockwell shares were lately up 2%, and Ingersoll-Rand gained 2.6%.
The Industrial Select Sector SPDR (NYSE:XLI) , which tracks companies in aerospace, defense, building products, engineering and construction, rose 1.3%.
Recent CAT News
- Form 8-K - Current report • Edgar (US Regulatory) • 06/14/2024 08:05:51 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/13/2024 05:12:55 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/13/2024 05:11:46 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/13/2024 05:11:23 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/13/2024 05:11:08 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/13/2024 05:10:43 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/13/2024 05:10:04 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/13/2024 05:09:55 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/13/2024 05:09:32 PM
- Tesla Surges 5% in Pre-Market; Virgin Galactic Drops 9% Following Reverse Stock Split, and More News • IH Market News • 06/13/2024 11:24:25 AM
- Caterpillar Inc. Increases Dividend and Increases Share Repurchase Authorization • PR Newswire (US) • 06/12/2024 02:30:00 PM
- Caterpillar Inc. Donates $500,000 to Associated Equipment Distributor Foundation's Vision 2025 Campaign • PR Newswire (US) • 06/11/2024 02:33:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/31/2024 04:32:05 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/28/2024 06:29:53 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/28/2024 06:29:08 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/22/2024 08:26:15 PM
- Nvidia Profits Set to Challenge Historic High Market; GE Aerospace Announces New Hires, and More News • IH Market News • 05/22/2024 10:37:09 AM
- Caterpillar Launches 'Pathways to Sustainability' - an Energy Transition Program • PR Newswire (US) • 05/20/2024 08:01:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/14/2024 05:14:41 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 05/13/2024 10:04:56 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/08/2024 10:00:15 AM
- Form 4/A - Statement of changes in beneficial ownership of securities: [Amend] • Edgar (US Regulatory) • 05/07/2024 09:25:53 PM
- Caterpillar Releases 2023 Company Reports • PR Newswire (US) • 05/07/2024 01:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/06/2024 01:24:11 PM
- Caterpillar Announces Virtual 2024 Shareholder Meeting • PR Newswire (US) • 05/03/2024 09:00:00 PM
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