Shares were up 0.66% to $121.58.
Analyst Jerry Revich also cut his price target to $130 from $156 a share.
Revich said in a note to investors that he expects the Deerfield, Illinois-based company's earnings before interest and taxes to decline next year "driven by meaningful production cuts in North America and China construction equipment markets, while the mining equipment recovery - which has developed slower than in prior cycles - isn't sufficient to offset the headwind."
Caterpillar's resource order recovery has slowed significantly earlier than in prior cycles, Revich said. After the company had significantly reduced its dealer inventories - particularly in construction industries - at the trough of the cycle, "we were surprised to see the company build North America Construction Industries dealer inventories in the beginning of the North America construction season this year," Ravitch wrote.
"As a result of these factors, visibility on operating profit growth for CAT off of 2019 levels is low, in our view, driving balanced risk-reward for the stock," he said.
Ravitch said the reduction in his target multiple "is attributable to increased visibility on a construction equipment demand downturn as well as an increased likelihood of a deferment of mining equipment investment amid building global macro headwinds."