Caterpillar price target raised to $326 from $266 at DA Davidson

DA Davidson analyst Michael Shlisky raised the firm’s price target on Caterpillar to $326 from $266 and keeps a Neutral rating on the shares following the Q4 report. The company increased both its margin and free cash flow guidance ranges, the analyst tells investors in a research note. The firm says that with the door open for mid-20s EBITDA margins, it continues to view Caterpillar “as a well-run market leader, albeit at the high-end of its own cyclical targets.” At the right starting valuation, the firm views the stock as a good long-term holding.