AG Edwards Lowers Caterpillar to 'Hold'

Analyst Michael Braig says the machinery maker's earnings fell well below his expectations

AG Edwards downgraded Caterpillar (CAT ) to hold from strong buy.

Analyst Michael Braig says Caterpillar's earnings per share fell well below expectations, and guidance has deferred recovery for the third consecutive year. Although profitability and financial conditions remain very good for a continuing low level of demand, and inventories remain low relative to demand, Braig says he prefers to wait for stronger signs of a recovery.

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