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Calls Of The Day: Caterpillar, Citi & More

Find out what top analysts are saying about Caterpillar, Citi and more. How should you be positioned, now?

Caterpillar

Shares of Caterpillar spiked higher on Tuesday after Morgan Stanley boosted its rating on the stock to "overweight" from "underweight" as part of a broader upgrade on the U.S. industrial sector.

“Fundamentals have caught up -- and now surpass -- multiples that have contracted recently to highly attractive levels," Morgan Stanley analyst Scott Davis wrote in a note to clients.

What should you make of it?

The price target is now $70, says Pete Najarian. At these levels I think CAT is interesting.

I think valuations are rich, counters Guy Adami.


Citigroup & Bank of America

On Tuesday Standard & Poor's revised its rating outlooks on BofA and Citi to negative from stable, citing uncertainty whether the government will provide more extraordinary support that benefits debt holders.

The negative outlook signals the possibility of a future downgrade.

What should you make of it?

It introduces uncertainty, says Joe Terranova. Financials aren’t performing terribly well right now. The developments makes me more interested in only putting money to work in best of breed stocks, such as JPMorgan .

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Trader disclosure: On February 9th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Terranova Owns (JPM), (JPM) Feb. Call Spreads, (JPM) Feb. Calls; Terranova Owns (DELL), (EMC), (MSFT), (AAPL), (OIH); Terranova Owns (GOOG), Is Short (GOOG) Feb. calls; Pete Najarian Owns (AAPL) Call Spread; Pete Najarian Owns (DIS), Is Short (DIS) Calls; Pete Najarian Owns (MGM) Call Spread; Pete Najarian Owns (MS), Is Short (MS) Calls; Pete Najarian Owns (TCK), Is Short (TCK) CallsPete Najarian Owns (XLF) Calls; Pete Najarian Owns (PBR) Puts; Pete Najarian Owns (BTU) Call Spread; Seymour Owns (MPEL), (AAPL), (BAC), (EEM), (F), (FXI), (LVS), (MGM), (MSFT)

For Tim Seymour
Seygem Asset Management Owns (PBR)
Seygem Asset Management Is Short (BIDU)
Seygem Asset Management Owns (FCX)

For Joe Terranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (CLB)
Virtus Investment Partners Owns More Than 1% Of (DLR)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (SKT)

For Mike Khouw
Cantor Fitzgerald & Co. Is A Market Maker In (SPY)
Cantor Fitzgerald & Co. Is A Market Maker In (LVS)
Cantor Fitzgerald & Co. Is A Market Maker In (MGM)
Cantor Fitzgerald & Co. Is A Market Maker In (WYNN)
Cantor Fitzgerald & Co. Is A Market Maker In (GOOG)
Cantor Fitzgerald & Co. Is A Market Maker In (BIDU)
Cantor Fitzgerald & Co. Is A Market Maker In (YHOO)
Cantor Fitzgerald & Co. Is A Market Maker In (MSFT)

Other Relevant Disclosures:
Najarian Owned (DIS) And Was Short (DIS) Calls Today
Jon Najarian Owns (DIS)