Bank of America (NYSE:BAC) downgraded Caterpillar (NYSE:CAT) from "Buy" to "Neutral," as the equipment maker's share price soared by 21 percent over the last month.
With September being such a big month for many equities, and the recession continuing on, especially in mature markets, there isn't much more room for a number of companies to move upward, including Caterpillar.
Even the recent announcement by Caterpillar that they were going to raise prices soon didn't have much effect, as the reality is they probably won't be able to successfully implement that in North America and Europe, although they do have some pricing opportunities in emerging markets, especially Brazil.
But to attempt to implement a raise in prices in all markets doesn't seem realistic, and it could cut down on sales in some major markets.
Caterpillar closed the week at $79.22, falling $0.46 on Friday, or 0.58 percent.
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