CAT - Caterpillar downgraded to Neutral at Baird on likely peak in backlog

Caterpillar ( NYSE: CAT ) on Monday was downgraded to Neutral from an investment rating of Outperform by analysts at Baird. They said the stock price of the maker of heavy equipment is "nearing a cyclical pivot point following strong recent outperformance."

The backlog in orders is likely to peak during the current quarter and "backlog erosion has a well established history of driving subsequent stock underperformance," according to Baird.

The financial services company lowered its price traget for Caterpillar ( CAT ) to $230 a share from $290 a share, based a price-to-earnings multiple of 11 times to 12 times.

More to come...

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