Ouch: Cat downgraded by Goldman Sachs
Target price cut from $38 to $32:
“We don’t expect Caterpillar earnings to bottom until the second half of 2010 and recent gains on stimulus optimism is likely to be more than offset by the reality of cuts in mining and oil & gas capex,” analyst Terry Darling wrote in a note to clients.
Double ouch: Down 4% in the premarket and the failed-bailout fun hasn’t even started yet.
If I were into that whole guilt-by-association thing I’d note that former financial high-flyers like Goldman were the architects of the current mess but it wouldn’t change the facts.