Caterpillar Upgraded at Bank of America/Merrill Lynch

Caterpillar  (CAT) was upgraded to "Buy" from "Neutral" at Bank of America/Merrill Lynch, with a price target of $120, an increase from $105.

The bank's analyst sees monthly retail sales accelerating, expects the company to raise its dividend in the summer, and expects "another big beat and raise" come July and analyst day in September as upcoming catalysts.

Additionally, there is a long runway for Mining to travel to improve and reminds clients that the company suggested it could achieve a doubling of mining truck sales by 2017. The analyst expects "replacement level demand of 700 units by 2020."

Shares of Caterpillar are higher by over 1% in early morning trading today.

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