Caterpillar: Engines, Energy And Emerging Markets Lift Outlook
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.  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 »