Industrial giant Caterpillar is on the cusp of a big year of earnings growth and potential new business strategy, Bank of America Merrill Lynch analysts said Thursday.
BofAML upgraded the stock to buy from neutral and raised its price target to $120, nearly 20 percent above where Caterpillar closed Wednesday. The stock, which traded flat Thursday morning, is up 8.2 percent this year, already beating the S&P 500.
“CAT is set up to beat all year long,” research analysts Ross Gilardi, Michael Feniger and Natalie O’Dea said in the note.
