UBS cuts Caterpillar price target to $243 due to macroeconomic concerns

From Barchart: 2025-04-08 16:15:00

UBS maintains Sell rating on Caterpillar (NYSE:CAT), lowers price target to $243 from $385 due to concerns over macroeconomic pressures impacting earnings trajectory. Caterpillar already facing lag in demand and pricing trends, with further deterioration expected as tariffs and economic uncertainty affect construction, oil & gas, and mining sectors.

UBS predicts Machinery, Energy & Transportation (ME&T) revenue to decline 7% in the second half of 2025, contrasting with Wall Street’s 2% rise expectation. The firm is cautious on 2026 earnings, projecting results 28% below current Street estimates. Caterpillar seen as indicator for global industrial health, with downside risks outweighing near-term catalysts.



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