Caterpillar boosted by Deutsche ahead of earnings

"Q1 expectations are low due to weather related headwinds and track record of consensus earnings misses in 4 of past 5 quarters," says analyst Vishal Shah. "That said, investor interest in CAT has been increasing over the past 2 months and we expect an inline/modest Q1 beat, positive commentary on construction and signs of recovery in mining to act as a positive catalyst for shares."

CAT's mining revenues tend to track those of other mining equipment companies, with about a 2-quarter lag, says Shah's team, which then notes aggregate orders at Joy Global, Atlas Copco, Sandvik, and Outotec were up 5% in Q3. If the lag holds, Caterpillar's mining business should show signs of stabilization in H1.

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