Caterpillar Inc (CAT) said it is withdrawing its 2020 financial guidance and is temporarily shutting down operations at some of its facilities as a result of the coronavirus-induced economic crisis.
“The magnitude of the COVID-19 pandemic, including the extent of any impact on Caterpillar’s business, financial position, results of operations or liquidity, which could be material, cannot be reasonably estimated at this time,” Caterpillar said in a statement on Thursday.
Like many industrial stocks, Caterpillar gets mixed ratings from Wall Street’s analysts. With 7 Buys, 5 Holds, and 1 Sell, the company’s shares get a Moderate Buy from the analyst consensus. The stock is trading at $107.38 in midday U.S. trading, suggesting room for 29% upside potential, should the $138.82 average price target be reached in the next 12 months. (See Caterpillar stock analysis on TipRanks)
Caterpillar added that its first-quarter and 2020 financial results will likely be impacted adversely by the COVID-19 pandemic. At the end of 2019, the company had $8.3 billion in cash reserves and a $10.5 billion credit line.