Veteran investors bought more caterpillar (CAT) stocks due to weakness

Kevin Simpson, founder and CEO of Capital Wealth Planning, recently bought more shares in Caterpillar (CAT), he told CNBC last week. Simpson is bullish about the company’s future leadership changes.

Meanwhile, Morgan Stanley upgraded cat strains to etc from sale last week, citing the rating.

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Why Simpson is bullish on cats

On April 15, Caterpillar revealed that its COO, Joseph Creed, will become an effective CEO on May 1. Creed has been involved in the company for 28 years. CAT CEO D. James Umpleby III will leave the construction equipment manufacturer as executive chairman.

Creed “is suitable for bringing Caterpillar to its next stage of growth,” Simpson said.

However, cat inventory is only suitable for long-term investors. This is because it is likely to “ground” quickly, and therefore quickly.” Simpson believes.

Morgan Stanley Upgrade

On April 16, investment bank Morgan Stanley raised the cat’s rating to equal weight. Cat strains sank almost 30% between the investment bank upgrades from mid-October and April 16th.

In addition to the rating, Morgan Stanley cited the company’s long-term positive catalyst as a reason for the upgrade.

Morgan Stanley has raised its stock price target from $300 to $283.

We acknowledge the potential of cats, but our belief lies in the belief that AI strains offer higher returns and hold a greater promise to do so within a shorter time frame. There have been AI stocks that have risen since the beginning of 2025, and the popular AI stocks have lost around 25%. If you’re looking for AI stocks that are more promising than cats, but are trading at less than five times the revenue, check out our report on this Cheapest AI stocks.

Read next: Best AI stocks to buy now and According to the billionaire, 30 best stocks to buy now

Disclosure: None. This article was originally published on Insider Monkey.