Caterpillar: Engines, Energy And Emerging Markets Lift Outlook

Thu, 11/10/2011 - 11:47 EDT - Seeking Alpha

CAT
Trefis

By Trefis:
Caterpillar’s (NYSE:CAT) stock has been under pressure since the beginning of last week despite encouraging news of new facilities, orders and completed acquisitions from the company, largely due to choppy global economic environment. The stock declined sharply on Tuesday last week along with the broader equity market weakness and has been range bound since then. Caterpillar’s machinery and engines business competes globally with Deere and Co. (NYSE:DE), Komatsu amongst others. Our $86 price estimate for Caterpillar stock is about 10% below market price.
Caterpillar targets growing markets in developing countries

Last Wednesday, Caterpillar’s Chief Financial Officer Ed Rapp reiterated the company’s growth expectations from emerging markets, which is expected to pick up the slack in demand from developed countries. [1] Urbanization in emerging markets means greater demand for infrastructure and housing, which will spur demand for the company’s heavy equipment. Caterpillar plans to expand production levels in around half ofComplete Story »

Original article
Login or register to post comments

Caterpillar Partnership With Westport Will Provide A Competitive Advantage
By Trefis: Caterpillar Inc (NYSE:CAT) has signed an agreement with Westport Inc (WPRT), a global leader in natural gas powered engines, to co-develop natural gas technology for Caterpillar's engines.
China Will Drive Caterpillar's Long-Term Growth Despite Recent Weakness
By Trefis: Last year, Caterpillar‘s (CAT) sales growth was severely impacted from monetary tightening in China. High interest rates in the country during the first half of 2012 significantly lowered the company’s construction equipment sales.
China Will Drive Caterpillar's Long-Term Growth Despite Recent Weakness
By Trefis: Last year, Caterpillar's (CAT) sales growth was severely impacted from monetary tightening in China. High interest rates in the country during the first half of 2012 significantly lowered the company’s construction equipment sales.
Caterpillar: Weak Economy Dampens Construction Equipment Maker’s Outlook
(MINNEAPOLIS) — Caterpillar says the world’s economy is weaker than it thought, and it doesn’t expect growth to pick up until the second half of next year. The company on Monday cut its 2012 revenue and profit guidance, and took a very cautious view toward its performance in 2013. Caterpillar makes the yellow-painted excavators, heavy tractors, and other construction equipment often seen on road-building projects. It’s the world’s largest maker of construction and mining equipment, and also makes engines.
Chart of the Week: The World's Infrastructure Plans
Demand for access to basic needs, an emerging middle class and a never-ending use of global resources—these are the primary drivers of major infrastructure projects over the next several years, says GE. In its Investor Meeting last week, the firm highlighted a few macro slides on world growth. One slide pins major global infrastructure plans totaling $4 trillion over the next 2 to 20 years.
Chart of the Week: The World's Infrastructure Plans
Demand for access to basic needs, an emerging middle class and a never-ending use of global resources—these are the primary drivers of major infrastructure projects over the next several years, says GE. In its Investor Meeting last week, the firm highlighted a few macro slides on world growth. One slide pins major global infrastructure plans totaling $4 trillion over the next 2 to 20 years.
Margin Of Safety Head To Head Battle: Caterpillar Inc. Vs. Deere & Company
By Margin of Safety Equity Research:This article is a continuation of our head-to-head series, in which we compare the investment merits of competitors across our spectrum of wide-moat stocks. Caterpillar Inc. (CAT) Introduction
Caterpillar Inc.: Benefitting From the Global Recovery
By David Zanoni:Caterpillar Inc.
Is Caterpillar a Bargain?
Bud Labitan submitsFrom Google Finance:
Emerging Economies Will Continue to Lead the Way
Hans Wagner submits: Emerging markets, especially China, Brazil, India, much of Asia and other parts of Latin America will lead the rest of the world in economic growth. As a multi-year trend, this is continuation of one of the best investing themes from 2009. Demand for commodities such as copper and steel will be critical for this growth.

Main menu

Secondary menu

Caterpillar: Engines, Energy And Emerging Markets Lift Outlook

Related

Latest

User login

Our Blog

Markets Map

Follow Us

Secondary menu