CAT - Caterpillar upgraded to Buy at BofA on machinery pricing strength

Caterpillar ( NYSE: CAT ) on Friday was upgraded to Buy from an investment rating of Neutral by analysts at Bank of America. They said the maker of heavy machinery and construction equipment has managed to raise its prices, helping to offset higher manufacturing costs.

China’s reopening from pandemic lockdowns is another positive for Caterpillar ( CAT ) amid doubts about global economic growth.

“Caterpillar’s ( CAT ) backlog is likely to fall given recession risks. That said, lead indicators are likely to improve in the second half, suggesting more of a ‘soft landing,’” Michael Feniger, analyst at BofA, said in a January 13 report. “As macro headwinds ease in six to nine months and investors look towards a new cycle, Caterpillar’s ( CAT ) multi-year growth prospects screen positive.”

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