Tuesday, October 5, 2010

Caterpillar (NYSE:CAT), Deere (NYSE:DE), Cummins (NYSE:CMI), AGCO (Nasdaq:AGCO) and Eaton (NYSE:ETN) among Favorites of Barclays (NYSE:BCS) for Brazil Exposure

In their recent research trip to Brazil concerning building out their infrastructure, Barclays (NYSE:BCS) came away with several favorites in the machinery sector serving the build-out, including Caterpillar (NYSE:CAT), Cummins (NYSE:CMI), Deere (NYSE:DE), AGCO (Nasdaq:AGCO) and Eaton (NYSE:ETN)

The two favorites of Barclays in the entire group are Caterpillar and CMI.

Overall, Barclays said after talking to these and many other players in Brazilian infrastructure projects, the feeling is things are picking up and those companies with large exposure should reap strong rewards going forward, as expenditures are increasing.

Brazil has been overshadowed by China and to a lesser extent India recently, and it may be their time to shine as significant capital is generated from a variety of energy sectors and projects.

Other companies they met with in the equipment industry were Terex (NYSE:TEX) and Bucyrus International (Nasdaq:BUCY).

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