Cramer said that scenario assumes Caterpillar will earn only $4 a share this year and receive a market multiple of nine times earnings. However, with the P/E ratio likely to expand given the company's dividend, Cramer said a $70 price target, or slightly less, is far more likely.
"Bottom fishers beware," Cramer concluded, Caterpillar may be one stock that's not yet found its bottom.
--Written by Scott Rutt in Washington, D.C.
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