1309 ET - Caterpillar likely has more earnings downside because of macro headwinds that isn't priced into the stock, according to UBS in a note. The analysts say recent underperformance reflects a modestly more challenged demand and pricing environment than was reflected in company expectations. But now, UBS thinks tariffs and continued uncertainty will weigh on the more economically sensitive parts of Caterpillar's business, including some construction verticals, oil and gas, and mining. UBS cuts Caterpillar to a sell rating from neutral and lowers the target price to $243 from $385. Caterpillar is down 0.8% to $277.83, and off 23% year-to-date. (sabela.ojea@wsj.com; @sabelaojeaguix)
(END) Dow Jones Newswires
April 08, 2025 13:09 ET (17:09 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.