Duignan has an "overweight" rating and a $109 price target for year's end, on the company's shares. That represents a roughly 30 percent upside from the stock's price on Monday.
"As long as global growth is positive in our view then Caterpillar, particularly at current valuations, is a great buy," Duignan said.
She said that if the global economy does reaccelerate, Caterpillar stock, which underperformed the S&P 500 over the summer, will be one of her top picks.
—By CNBC.com's Katie Little; Follow Katie Little on Twitter @katie_little
—Reuters contributed to this report
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JPMorgan acted as lead or co-manager in a public offering of equity and/or debt securities for Caterpillar within the past 12 months.