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Caterpillar: Stronger Than Ever.(rise in share price)
- Article from:
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Kiplinger's Pick of the Day Web Feature
- Article date:
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June 8, 2005
- Author:
- Dixon, Lisa
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Copyright informationCOPYRIGHT 2005 The Kiplinger Washington Editors, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Kiplinger Washington Editors
Shares of Caterpillar (CAT) have risen 12% since early November, and they've more than doubled since 2002. But the potential for much better-than-expected earnings and surging free cash flow over the next couple of years means the stock still has plenty of room to run, according to Prudential analyst Andrew Casey.
Casey upgraded Caterpillar to "overweight" (from "neutral weight") on Tuesday, saying that he expects the company to generate "significantly higher earnings than previously expected," based on improving profit margins and strong demand for most of Caterpillar'sequipment.
He raised his earnings estimate for 2005 to ...