Shares of Caterpillar Inc. (CAT) rallied 1.1% in morning trading Friday to buck the selloff in the broader stock market, and enough to pace the Dow Jones Industrial Average's gainers. Analyst Michael Feniger at BofA Securities reiterated the neutral rating on the construction and mining equipment company (CAT) but raised the stock price target to $224 from $215. Feniger said a call with Caterpillar Group President of Resource Industries Denise Johnson was "encouraging," as there were "no signs of a slowdown from customers," partnerships were unlocking new opportunities and technology investments were bearing fruit. The stock's rally comes as the Dow slumped 305 points, or 0.9%, with 24 of 30 components losing ground. "CAT's tech leadership is impressive," Feniger wrote in a note to clients. "In our view, a more significant, sustained step up in pricing power could help illustrate that CAT is getting fully rewarded for its tech and underpin a re-rating story." The stock has run up 14.2% the past three months, while the Dow has slipped 2.5%.
(END) Dow Jones Newswires
June 03, 2022 11:44 ET (15:44 GMT)
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