Street View: Caterpillar's sustainability through hazy macro remains to be seen

Caterpillar CAT.N reported lower-than-expected Q1 results on Wednesday due to weak construction demand

Co outlined two scenarios for annual sales forecast, one of which included potential tariff-related impacts

Median PT of 28 brokerages covering the stock is $373.50; average analyst rating is "hold" - LSEG data

TARIFF UNKNOWNS LINGER

Bernstein ("market perform", PT: $304) says CAT results seem to defy slowing construction activity, as they prove co to be better positioned to respond to demand vs past cycles despite unknown demand pull-forward

Evercore ISI ("in line", PT: $375) says the FY outlook with tariffs is "no worse than feared" and both forecast profit scenarios show stock trading at reasonable levels

Morgan Stanley ("equal weigh", PT: $283) says despite signs of notable demand in Q1, they remain skeptical that results are driven by pull-forward demand ahead of tariffs

"We think the risk of further deterioration cannot be yet dismissed" - brokerage

Daiwa Capital Markets("neutral", PT: $310) says strong residential construction demand in North America might not be sustainable in the face of economic uncertainties