Caterpillar price target lowered to $376 from $385 at BofA

BofA lowered the firm’s price target on Caterpillar (CAT) to $376 from $385 and keeps a Buy rating on the shares. While stating that Caterpillar is still a cyclical OEM, the firm says after a better than expected Q2 report that it is “observing some quality attributes relative to other OEMs and prior slowdowns.” The firm still see risks from a bigger destock and pricing, but argues that Caterpillar is “holding the line” on EPS amidst a macro slowdown and continues to prefer the shares to to Neutral-rated Deere (DE) in large cap Machinery, the analyst tells investors.