Caterpillar ( NYSE: CAT ) on Friday was downgraded to Hold from Buy by analysts at Deutsche Bank who said shares in the maker of construction and mining equipment have limited room to rise in value. After hitting a 52-week low of $160.63 a share in late September, the stock has risen more than 35% to about $218.
“In many ways, recommending CAT after the recent move in the stock is playing with fire, for several reasons,” according to Deutsche Bank.
The bank cited Caterpillar’s recent trading range of $180-$220 trading range, the possibility of a global recession and the likelihood that its order backlog has peaked as reasons for caution.
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Caterpillar downgraded at Deutsche Bank on limited upside