Target price slashed by 26% overnight! Morgan Stanley: Caterpillar's (CAT.US) AI myth is being punctured bit by bit by the cycle.

Zhitong Finance APP has learned that in its latest research report, Morgan Stanley significantly lowered its price target for Caterpillar (CAT.US) from $915 to $675, explicitly judging that the stock has officially shifted from AI-theme-driven valuation expansion into a "cyclical valuation correction" phase. Although Morgan Stanley maintains its "Equal-weight" rating and "Attractive" industry view, it states bluntly that the market had long priced the stock for "perfection," leaving little room for error, and the new price target implies only about 4% upside.