UBS downgraded Caterpillar (CAT) to Sell from Neutral with a price target of $243, down from $385. UBS thinks more earnings downside related to macroeconomic headwinds is not yet priced in, the analyst tells investors in a research note. The firm believes the macroeconomic impacts of the tariffs and continued uncertainty will lead to further deterioration in multiple sectors of the U.S. and global economy, and believes this will weigh on the more economically sensitive parts of Caterpillar’s business, including some construction verticals, oil and gas, and mining.
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