Jefferies Reiterates “Buy” Rating for Caterpillar; Could Benefit from Japan Rebuild (CAT)

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Construction and mining equipment maker Caterpillar Inc. ( CAT ) caught some very positive comments on Wednesday from analysts at Jefferies & Co.

The firm reiterated its "Buy" rating and $120 price target on CAT. That target suggests a 19% upside to the stock's Tuesday closing price of $100.75.

Jefferies noted that CAT has limited exposure to the disaster in Japan and could benefit substantially from rebuilding efforts there. The analyst commented, "CAT is benefiting from recovering demand for construction and mining equipment globally. Demand appears to be shifting from emerging to developed markets, and we do not see recent turmoil in Libya or the earthquake in Japan as derailing the global economic recovery."

Caterpillar shares rose $1.13, or +1.1%, in premarket trading Wednesday.

The Bottom Line
We have been recommending shares of Caterpillar ( CAT ) since Dec.7, 2010, when the stock was trading at $89.20. The company has a 1.75% dividend yield, based on last night's closing stock price of $100.75.

Caterpillar Inc. ( CAT ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: CAT

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