Investing.com - Shares in Caterpillar (NYSE:CAT) rose more than 1% in pre-market trade Monday and were set to hit an all-time high after JP Morgan upgraded its shares on their analysis that the industrial equipment maker would benefit from the recent Republican tax reform.
These experts upgraded Caterpillar to “overweight” from “neutral” and increased the price target from $144 to $200.
“The Tax Cuts and Jobs Act supports replacement of equipment at an accelerated pace through 2022 as both new and used equipment are now eligible for expensing, a positive for Caterpillar's North American end markets,” JP Morgan said in the note to clients.
Caterpillar is scheduled to release fourth quarter earnings on January 25.
Prior to the Wall Street open, shares in Caterpillar gained 1.44% to $164.30 in pre-market trade.