Caterpillar upgraded to Neutral from Underperform at Baird

Baird analyst Mircea Dobre upgraded Caterpillar (CAT) to Neutral from Underperform with a price target of $309, up from $300. The firm says the fundamental catalysts warranting a negative view on Caterpillar, namely the needed dealer destock and a downward margin reset, are at this point baked into the company’s fundamentals and expectations. Going forward, Baird sees some positive signs, including better than expected dealer inventories, more resilient demand, and a “prudent approach” to price versus cost management in dealing with tariffs from Caterpillar.