Caterpillar: shares gain; broker positive

(CercleFinance.com) - Shares in Caterpillar gain over 3%, the biggest riser in the Dow Jones index, helped by positive broker comments from Credit Suisse.


The broker says that it remains encouraged that demand has surprised on the upside since the Covid crisis started, and that dealer inventories appear no longer elevated.

"In fact, for some products dealers sited inventories are too low," Credit Suisse said.

"We expect underlying profitability to be solid for Caterpillar in the third quarter and fourth quarter and visibility appears good enough," it added.

Credit Suisse has an "outperform" rating on Caterpillar, with a 179-dollar price target.

Copyright (c) 2020 CercleFinance.com. All rights reserved.