After Caterpillar (CAT) released an 8K in which it disclosed that the company now sees its 2025 net tariff headwind to be in the range of $1.5B-$1.8B, up from $1.3B-$1.5B previously, Morgan Stanley lowered the firm’s 2025 EPS estimate to $17.13, which is 6% below consensus, driven by the increased tariff headwinds. Updated steel, aluminum, and country specific tariffs pose a risk for the rest of the agriculture, construction and rail locomotive original equipment makers in the analyst’s coverage, including Oshkosh (OSK), Terex (TEX), Deere (DE), CNH Industrial (CNH), Agco (AGCO) and Wabtec (WAB), the firm stated. Morgan Stanley has an Underweight rating and $350 price target on Caterpillar shares.
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