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Why Are Caterpillar Shares Surging Today?

Published 08/03/2022, 20:23
Updated 08/03/2022, 21:10
© Reuters.  Why Are Caterpillar Shares Surging Today?
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Caterpillar Inc (NYSE: NYSE:CAT) is leading the Dow Jones higher Tuesday after Jefferies analyst Stephen Volkmann upgraded the stock from a Hold rating to a Buy rating and raised the price target from $215 to $260.

The Jefferies analyst was previously concerned that constrained CAPEX and ESG themes in mining and oil and gas markets would lead to more modest cyclical growth than in past cycles. However, following Russia's invasion of Ukraine, Volkmann now believes the ongoing geopolitical tensions have impacted global commodity markets in a way that will likely spur years of reinvesting in the name.

Capacity expansion and supply diversification will be necessary for the mining and oil and gas sectors going forward, which should drive structurally higher pricing, according to the Jefferies analyst.

Related Link: Jefferies Turns Bullish On Caterpillar, Raises Price Target (NYSE:TGT) By 21%

CAT 52-Week Range: $179.67 - $246.69

Caterpillar shares were up 8.24% at $212.92 at time of publication.

Photo: PeterDargatz from Pixabay.

Latest Ratings for CAT

DateFirmActionFromTo
Mar 2022JefferiesUpgradesHoldBuy
Feb 2022Tigress FinancialMaintainsBuy
Jan 2022 Credit Suisse (SIX:CSGN)MaintainsOutperform
View More Analyst Ratings for CAT

View the Latest Analyst Ratings

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