Cramer: Caterpillar Delivered On Promise
NEW YORK (TheStreet) -- Jim Cramer believes Caterpillar's(CAT) stock price can go up to $90.
Caterpillar is a "glass half-full"-type of company, says Cramer. Instead of focusing on how poorly countries like Brazil, China, Europe and the United States are doing, Caterpillar focuses on the plans these countries have in place to turn themselves around or how Caterpillar could become less dependent on them.
Cramer says the "stock got overly hammered" earlier in the year because of a belief that Caterpillar was being too bullish with its guidance. But he believes the company deserves the benefit of the doubt because they delivered on that outlook, even beating estimates.
Cramer wasn't put off by Caterpillar lifting its full year outlook by only 10 cents a share despite beating in the latest quarter by more than that. He feels the company is being realistic, not conservative, trying to take into account uncertainty about the future and potential problems in China, where there is a possibility of cancelled orders.