Benzinga | Oct 29, 2021 04:16PM EDT

UBS Analyst Turns Bullish On Caterpillar - Read Why

* UBS analyst Steven Fisher upgraded Caterpillar Inc. (NYSE:CAT) to Buy from Neutral and raised the price target to $235 (an upside of 15%) from $232.

* Fisher thinks sentiment on the shares will improve as margins inflect and surprise to the upside during this upcycle. All three of Caterpillar's segments will grow over the next 2-3 years, and falling input costs and the removal of headwinds will create a "strong margin tailwind" for the company during the upcycle, leading to outsized margin performance.

* He thinks "the coming inflection" is not being appropriately recognized by investors.

* Credit Suisse analyst Jamie Cook raised the price target to $240 (an upside of 17.7%) from $239 and maintained an Outperform rating.

* Morgan Stanley analyst Courtney Yakavonis raised the price target to $166 (a downside of 18%) from $165 and maintained an Underweight rating on the shares.

* Price Action: CAT shares closed lower by 0.09% at $203.91 on Friday.