Analyst Upgrades Caterpillar Stock to Buy Despite Coronavirus Fears

Caterpillar (NYSE: CAT) stock just got upgraded. Yes, you read that right. At a time when the COVID-19 outbreak is causing a market meltdown, raising fears of a recession, and triggering frenzied stock downgrades across industries, investment bank Stifel Nicolaus has taken an exception and upgraded Caterpillar's stock rating from a "hold" to a "buy."

To be fair, Stifel isn't calling a bottom on Caterpillar shares yet, but it has turned bullish on the blue chip stock. When Stifel rates a stock a "buy," it typically expects the stock to outperform the S&P 500 and generate total returns of at least 15% over the next 12-18 months.

Stifel analyst Stanley Elliot points to Caterpillar's history and believes the "business has structurally improved its earnings and cash flow profiles," which should help Caterpillar "limit downside earnings versus previous cycles."

Source Fool.com