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Shares of Caterpillar (CAT) - Get Caterpillar Inc. Report  rose slightly Friday even after the stock was downgraded amid slowing global demand.

Caterpillar rose 0.29% to $131.42 in trading Friday. The stock had slumped in the premarket session after Morgan Stanley cut its rating on the heavy equipment manufacturer to equal weight from overweight.

Morgan Stanley analyst Courtney Yakavonis also set a price target of $145 a share, representing a 9.8% premium over the stock's closing price Thursday of  $132.07.

Caterpillar is slated to report its quarterly earnings on Oct. 23.

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Analysts surveyed by Zacks Investment Research estimate a 1.1% drop in earnings to $2.83 a share, and a 0.9% drop in revenue to $13.38 billion.

Caterpillar's bottom line has been increasingly buffeted by fallout from the trade war between the United States and China, a slowing global economy, and a struggling manufacturing sector.

The heavy equipment operator's backlog of work fell $2.7 billion in the second quarter to $15 billion, Zacks noted.