Analysts at Goldman Sachs on Tuesday morning raised its target price for heavy equipment maker Caterpillar Inc. (CAT) - Get Report shares to $158 a share as the construction market improves.

"We believe CAT's valuation looks even more attractive on a cash P/E basis, on which the stock trades at an implied 10.8x cash P/E due to depreciation outpacing capex over the near-term (13.5x at our 12-month $158 price target)," Goldman analyst Jerry Revich told clients.

Revich also raised his EPS estimates for Caterpillar to $5.47, from $5.46 for 2017 and he analyst comments FY 2017 EPS estimate rises from $5.46 to $5.47, FY 2018 EPS estimate increases from $7.25 to $7.31 and FY 2019 EPS estimate rises from $8.44 to $8.86.

According to FactSet data, analysts who cover Caterpillar have a consensus estimate for its third-quarter earnings of $1.26 a share.

Last month The company hosted its investor day, prompting a few analysts to rally behind the stock, including UBS's Steven Fisher.

"There is a gem in this terrific Caterpillar upgrade by UBS," TheStreet's Jim Cramer said on CNBC's "Mad Dash" segment at the time. Monday. That hidden gem comes in the form of pipelines. The analyst notes how the Federal Energy Regulatory Commission has approved nearly as many miles of natural gas pipelines in 2017 than it had for all of 2016.

"This is an example of deregulation that people don't realize," Cramer reasoned, explaining that "there have been some pipelines that have been approved that would have been denied for years and years under the previous administration, and that's a lot of business for CAT."

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