[OT] CAT, which unofficially raised guidance three months ago (#msg-37451985), officially raised guidance this past week, sending the share price up 24% on the week: #msg-39888650.
CAT is (IMO) one of the better investment plays on the demographic tailwind from the emergence of a bona fide middle class in many countries for the first time in history.
[OT] CAT: Goldman Sachs is a little late on this call inasmuch as CAT is up 170% from its low in March 2009. Why wasn’t GS paying attention when CAT unofficially raised guidance in April (#msg-37451985)?
›Goldman Sachs Raises Caterpillar to ‘Neutral’[LOL]
Wed Oct 21, 2009 9:30am EDT
Oct 21 (Reuters) - Goldman Sachs upgraded Caterpillar Inc (CAT) the stock to "neutral" from "sell" and bumped up its price target by $16 to $64, citing improved cost control by the company and a stronger outlook for construction equipment demand.
"Recent macro data foreshadows potential for a sharper construction recovery and CAT's cost control has clearly improved, benefiting from aggressive first-quarter actions," analyst Jerry Revich said,
Revich also expects strong commodity outlook to drive capital expenditure in the mining sector and sees a jump in global construction equipment sales as investments in the construction market increase.
However, Stifel Nicolaus downgraded the stock to "sell" from "hold,"[that’s what makes a market :- )] saying profit will rise only with sales in 2010, offering little operating leverage.
Shares of Caterpillar closed at $59.61 Tuesday on the New York Stock Exchange.‹
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