11:41 AM EST, 02/03/2025 (MT Newswires) -- Caterpillar's ( CAT ) risk/reward is now balanced as expectations for the company have reset lower following two straight quarterly misses in earnings before interest and taxes, UBS Securities said in a Monday note.

UBS said potential downside risk exists if "pricing pressure intensifies in 1H25 and/or oil & gas steps down more," UBS said. "But we see equal risk that business is better than we think in 2H25/2026."

The investment firm said it cut its diluted earnings per share estimates for Caterpillar ( CAT ) to $19.95 from $21.25 for 2025, to $21.95 from $22.25 for 2026 and to $22.85 from $23.25 for 2027.

UBS upgraded the company's rating to neutral from sell and raised its price target to $385 from $355.

Caterpillar ( CAT ) shares were down 1.1% in recent trading.

Price: 367.49, Change: -3.95, Percent Change: -1.06