The target price was cut by 26% overnight! Morgan Stanley: Caterpillar's (CAT.US) AI myth is being gradually punctured by the cycle.

智通财经APP has learned that in its latest research report, Morgan Stanley has significantly lowered Caterpillar (CAT.US)'s target price from $915 to $675, clearly indicating that the stock has shifted from valuation expansion driven by the AI theme to a “cyclical valuation correction” phase. While Morgan Stanley maintains an “Equal-weight” rating and an “Attractive” industry view, it frankly points out that the market has already priced the stock to a “perfection” level, leaving little margin for error, and the new target price implies an upside of only about 4%.