Caterpillar Raises Equipment Prices (2005-9-7)

Caterpillar posted record profits for the second quarter amid strong demand that has fueled a two-year sales surge. Adjusting for a recent stock split, its shares have risen nearly 60 percent in the past year and surged more than 8 percent from last Wednesday through Friday amid speculation about the impact of Hurricane Katrina on demand for its equipment.

Its stock rose 26 cents to close at $58.51 Tuesday on the New York Stock Exchange, however, after Merrill Lynch downgraded its stock from "buy" to "neutral." The brokerage said that investors were too optimistic about the Katrina impact and that the company\’s shares were overvalued.
(Source:aem)