Caterpillar Withdraws 2020 Guidance, Partially Shuts Down Operations
Caterpillar Inc (CAT) said it is withdrawing its 2020 financial guidance and is temporarily shutting down operations at some of its facilities as a result of the coronavirus-induced economic crisis.
“The magnitude of the COVID-19 pandemic, including the extent of any impact on Caterpillar’s business, financial position, results of operations or liquidity, which could be material, cannot be reasonably estimated at this time,” Caterpillar said in a statement on Thursday.
Like many industrial stocks, Caterpillar gets mixed ratings from Wall Street’s analysts. With 7 Buys, 5 Holds, and 1 Sell, the company’s shares get a Moderate Buy from the analyst consensus. The stock is trading at $107.38 in midday U.S. trading, suggesting room for 29% upside potential, should the $138.82 average price target be reached in the next 12 months. (See Caterpillar stock analysis on TipRanks)
Caterpillar added that its first-quarter and 2020 financial results will likely be impacted adversely by the COVID-19 pandemic. At the end of 2019, the company had $8.3 billion in cash reserves and a $10.5 billion credit line.
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