Caterpillar price target raised to $185 at UBS as mining in early recovery

|About: Caterpillar Inc. (CAT)|By:, SA News Editor

Caterpillar (CAT -1%) is lower even as UBS reiterates a Buy rating and lifts its stock price target to $185 from $178 while boosting EPS estimates for this year and next.

UBS analyst Steve Fisher expects global mining to be one of the best industrial end markets this year, with capex for major mining companies seen jumping 17% after half a decade of declines and more big projects coming online, supporting his belief that CAT's mining business is still in its "early recovery phase," as are parts of its construction, energy and transportation businesses.

Fisher says CAT told the firm's recent Industrials Conference that it sees mining revenue continuing to climb from the Q1 run rate of $2.2B, and a ramp up could put sales near $10B for the full year.