The firm cites "too many headwinds to ignore" - including North America locomotives; oil, gas and other commodity investments; and emerging market weakness such as Brazil and China - that likely will spill over into at least next year, adding that even in the U.S., a market that typically has been a source of strength, weakness in the ABI is troubling, with no recovery in oil and gas in sight.
Blair says there are no clear major catalysts that could provide any sort of positive momentum for CAT other than an acceleration in the global economy, for which there is currently "no visibility."
In the wake of CAT's woes, analysts Barclays and Raymond James advise investors to stay away from CAT and most of the overall machinery sector.
Earlier: Barclays begins U.S. machinery sector with negative view
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