Investing.com – Caterpillar Inc (NYSE:CAT) shares touched a new record high on Monday, boosted by UBS’s bullish take on the stock.
UBS analyst Steven Fisher upgraded the mining and farming equipment maker to Buy, after holding a Neutral rating on the stock for at least years. At the same time, the stock price target was raised to $140 from $116. As a reason for the upgrade, Fisher cited a growing cash position and signs suggesting the earnings upcycle will continue.
Fisher added that UBS’s latest analysis of private non-residential construction suggests a re-acceleration in activity in the fourth quarter, with mid-single-digit percentage growth into 2018. Fischer expects Caterpillar will generate nearly $10 billion in cash flow between 2018 and 2020 after capital expenditures and dividends which can be returned to shareholders.
Caterpillar’s shares climbed as high as $124.43 on Monday, a record high.