Caterpillar (NYSE: CAT) stock is down nearly 20% in the last month as broader market volatility and ongoing supply chain issues pressure infrastructure companies and equipment manufactures. Adding to the downward pressure are a couple of analyst price target adjustments.
A Cowen analyst kept an outperform rating and lowered his price target from $255 per share to $225 per share, while a Citigroup analyst lowered his price target from $225 per share to $190 per share while maintaining a neutral rating. Trading at less than $175 per share at the time of this writing, both analyst ratings still signal upside for Caterpillar.
Let's dive deeper into Caterpillar to see what's pressuring the company and why the stock quickly went from a commodity play to out of favor on Wall Street.
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My Top Dividend Aristocrat for the Second Half of 2022