NEW YORK (TheStreet) -- Caterpillar (CAT) - Get Report stock is dropping in mid-afternoon trading on Monday, after the company was downgraded to "sell" from "neutral" at GoldmanSachs. The firm lowered its price target on the stock to $51 from $67.
The Peoria, IL-based manufacturer of construction and mining equipment faces lower returns from the machinery industry, the firm said, according to Marketwatch.
There is less demand for the company's products in countries such as China, the firm added.
Earlier this month, Caterpillar was downgraded at J.P. Morgan due to challenges in emerging markets.
The company reports its 2015 fourth quarter earnings results before the market open on Thursday.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "hold" with a ratings score of C. Among the primary strengths of the company is its reasonable valuation levels, considering its current price compared to earnings, book value and other measures. At the same time, however, we also find weaknesses including deteriorating net income, generally higher debt management risk and poor profit margins.
You can view the full analysis from the report here: CAT