Morgan Stanley analyst Courtney Yakavonis noted that while some parts of Caterpillar's portfolio are "clearly approaching peak," she believes the consensus view is "embedding an overly draconian scenario for 2020." She expects Construction segment revenue declines of 2%-5% in 2020/2021 to be offset by growth in both Mining and the other 45% of Caterpillar's portfolio that likely remains below mid-cycle, Yakavonis tells investors. In particular, she believes the market is underappreciating the potential growth within Caterpillar's Mining business through 2022, stating that she expect 8% average revenue growth in Caterpillar's Resource division to offset Construction declines. Yakavonis raised her price target on Caterpillar shares to $165 from $160 and keeps an Overweight rating on the stock.

Stifel downgraded Caterpillar to Hold from Buy with a price target of $350, up from $293, after the company reported Q1 results. The firm noted that Q1 sales were "modestly" below expectations, though EBIT and EPS were ahead of consensus estimates. Results also reflected weaker end user sales, the analyst tells investors in a research note.

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.  1... To see the rest of the story go to thefly.com. See Story Here

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.  1... To see the rest of the story go to thefly.com. See Story Here

Check out this morning's top movers from around Wall Street, compiled by The Fly.  UP AFTER EARNINGS... To see the rest of the story go to thefly.com. See Story Here

Still does not expect significant change in machine dealer inventory compared to 2023. Still expects 2024 full-year adjusted operating profit margin to be in the top half of the updated target range relative to the expected corresponding level of sales and revenues. Still expects 2024 full-year ME&T free cash flow to be in the top half of the updated target range. Still anticipates another year of services growth.

Sees Q2 dealer inventories of machines down year-over-year. Expects Q2 price realization to remain favorable vs, last year. Sees Q2 adjusted operating profit margin similar to 2Q23. Guidance taken from Q1 investor presentation slides.

Reports Q1 revenue $15.8B, consensus $16.04B. "I'm pleased with our team's performance that resulted in higher adjusted operating profit margin, record adjusted profit per share and strong ME&T free cash flow. Our strong balance sheet and ME&T free cash flow allowed us to deploy a record $5.1 billion of cash for share repurchases and dividends in the first quarter," said Chairman and CEO Jim Umpleby. "We continue to execute our strategy for long-term profitable growth."

Notable companies reporting before tomorrow's open, with earnings consensus, include Merck (MRK), consensus $1.87... Caterpillar (CAT), consensus $5.14... Comcast (CMSCA), consensus 99c... Honeywell (HON), consensus $2.17... Bristol-Myers (BMY), consensus ($4.44)... Altria (MO), consensus $1.15... Keurig Dr. Pepper (KDP), consensus 35c... GE Vernova (GEV), consensus (37c)... Royal Caribbean (RCL), consensus $1.33... Tractor Supply (TSCO), consensus $1.72... Mobileye (MBLY), consensus (6c)... Textron (TXT), consensus $1.23... LabCorp (LH), consensus $3.48... Southwest Airlines (LUV), consensus (34c)... American Airlines (AAL), consensus (29c)... Harley-Davidson (HOG), consensus $1.51.