Tuesday, November 23, 2010

Caterpillar (NYSE:CAT) Positioned Strongly for Global Trends

Global trends are favoring equipment-makers like Caterpillar (NYSE:CAT), and if they are able to continue to build momentum and integrate Bucyrus (Nasdaq:BUCY) rather seemlessly into the business, they could meet expectations, and possibly surpass them.

Barclays (NYSE:BCS) said, "We certainly like the way that the new management team is evolving the portfolio, and we increasingly view CAT as a company well positioned to address key global growth trends.

"We remain Equal Weight as we continue to assess the organization's ability to continue to build momentum with core operational initiatives CPS and Lane strategy while closing and integrating the BUCY transaction. As we develop greater comfort around these issues, we look to get more constructive on the name given what we view to be an increasingly well-positioned portfolio relative to key macro drivers over the next several years."

Caterpillar closed Monday at $84.00, gaining $0.03, or 0.04 percent. Barclays has a price target of $87 on the equipment giant.

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