Deutsche Bank analyst Vishal Shah was out pounding the table on Caterpillar Inc. (NYSE:CAT) Monday, reiterating a Buy rating and price target of $80, which represents a potential upside of 26% from where the stock is currently trading.

Shah wrote, “Since CAT cut 2015 guidance and announced its outlook for 2016, shares are d own 7%. At these levels, shares are attractive in our view. The 2 greatest concerns weighing on the stock is that further downside risk to 2016 EPS and that next year will not mark an EPS trough. By taking a conservative approach to 2016 and 2017, we estimate that earnings will trough at ~$3.75 in 2016 and rebound to ~$4.10 in 2017, implying earnings growth of 10%. Applying a 21x trough P/E multiple leads us to a $80 price target.”

Furthermore, “We estimate CAT will generate EPS of $3.76 in 2016. Our 2017 estimate implies $0.35 earnings growth and does not include buybacks (restructuring costs will likely limit CAT’s buyback program). Shares are currently trading at the mid -cycle multiple of 16x, suggesting further downside in 2017. Our view is that it should trade at trough (~21x), implying a share price of $80 or 23% upside from current levels.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Vishal Shah has a total average return of -21.0% and a 17.9% success rate. Shah has a -13.9% average return when recommending CAT, and is ranked #3750 out of 3759 analysts.

Out of the 17 analysts polled by TipRanks, 4 rate Caterpillar stock a Buy, 10 rate the stock a Hold and 3 recommend a Sell. With a return potential of 21%, the stock’s consensus target price stands at $76.67.

CAT Chart