NEW YORK (TheStreet) -- Shares of Caterpillar (CAT) could be adversely affected as the U.S. Senate's Permanent Subcommittee on Investigations plans to hold hearings in early April on whether the company improperly evaded U.S. taxes, according to Bloomberg.
A Caterpillar employee has accused the company in 2009 of avoiding over $2 billion in U.S. taxes by using a "Swiss structure" to move profits to offshore companies. The firm would then return the money to the U.S by means of a "Bermuda structure" that involved shell companies, and avoiding paying taxes.
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TheStreet Ratings team rates CATERPILLAR INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CATERPILLAR INC (CAT) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, reasonable valuation levels, good cash flow from operations, increase in stock price during the past year and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows: