Caterpillar downgraded to Sell from Neutral at UBS

UBS analyst Steven Fisher downgraded Caterpillar to Sell from Neutral with a price target of $225, down from $230. The company’s "downshift in growth" is underappreciated at current share levels, the analyst tells investors in a research note. The firm does not think there is enough cyclical momentum to justify the stock’s current valuation. The cycle is not over, but Caterpillar is unlikely to post substantial earnings growth in 2024 and 2025, contends UBS. It notes Caterpillar’s backlog growth has been softening, which creates a negative share catalyst.