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Caterpillar's global machine sales add 8%, gaining momentum

Published 06/20/2017, 12:17 PM
© Reuters.  Caterpillar's global machine sales add 8%, gaining momentum
CAT
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  • Caterpillar (CAT +0.5%) reports an 8% Y/Y increase in worldwide retail machine sales for the rolling three-month period ending in May, a nice bump from the 1% gain seen in both March and April.
  • CAT says sales in Asia and the Pacific surged 49%, including strong gains in sales of resource industries equipment, the segment that includes mining machinery.
  • Total sales in the energy and transportation segment rose 4% following the previous month's 2% decline.
  • Given that data suggests accelerating revenue growth, BofA Merrill Lynch views earnings risks as "skewed squarely to the upside" with the potential for a "material" increase in Q2 earnings guidance; the firm keeps its Buy rating and $120 price target on CAT shares.
  • Now read: Caterpillar: The CAT Should Stay In The Bag For Now


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