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By Kim Khan
Investing.com – Caterpillar (NYSE:) fell Thursday, but the stock was one of the few components showing a little resilience after a heavyweight Wall Street upgrade.
Shares were down 0.5% in morning trading, while the slumped 0.6%.
Goldman Sachs (NYSE:) upgraded the stock to buy from neutral today, raising its price target to $168 per share from $156 per share.
The heavy-equipment maker’s stock is showing an attractive risk-reward scenario, according to Goldman analyst Jerry Revich.
Factors that should help include “tightening U.S. construction equipment capacity utilization and dealer inventories and backlog approaching trough levels,” Revich wrote.
Shares of Caterpillar are down nearly 8% year to date, with selling pressure coming as the impact of Covid-19 on the Chinese economy and demand from the country becoming clearer.
Opinion of the stock on Wall Street is fairly split.
Among those covering Caterpillar there are 11 buy ratings, 12 neutrals and 3 sells, according to Investing.com.
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