Morgan Stanley’s Angel Castillo cut his rating on the construction- and mining-equipment company’s stock to underweight, after being at equal weight since the beginning of the year. Castillo also cut his share-price target to $332 from $349,

Morgan Stanley analyst Angel Castillo downgraded Caterpillar stock to Sell from Hold, and his price target slipped to $332 from $349.

Caterpillar (CAT) shares dip Monday morning after Morgan Stanley's analyst team downgraded the stock to Underweight and cut their price target to $332 per share. The construction and agricultural machinery maker has seen its stock rise by 34% year-to-date.

Financial-services firm Morgan Stanley downgraded Caterpillar (CAT) to Underweight, citing potential de-stocking downturn for US construction equipment.

Shares of Caterpillar Inc (NYSE:CAT) fell 2.6% in pre-open trading after Morgan Stanley downgraded the stock to “underweight” from “equal-weight.” This shift in outlook comes amid concerns about potential destocking within