This morning, Prudential issued notes on two of my favorite companies: Boeing Co. (NYSE: BA) and Caterpillar Inc. (NYSE: CAT).

Prudential upped Boeing's target price from $99 to $103 but maintained the Overweight rating. The analyst, Byron Callan, tweaked his model, specifically adding 737 deliveries 2-5 years out. Mostly, however, he sees broader macro factors as a positive.
Prudential notes that other analysts recommending the stock have higher earnings estimates.

Caterpillar, which has been one of my favorite companies and stock for a while now, last week reported better-than-expected results for the first quarter. Booming overseas markets were the main drivers. Indeed, while the North American slumping housing market continues to represent a challenge, the overseas outlook is positive.
Prudential expects the N.American market to start improving in the second half of 2007, as the worst of the housing market slump is likely over. 2008 will be much better for CAT, and investors should focus on that, analyst Igor Maryasis said. He expects CAT's earnings to reaccelerate.
Prudential maintains its Overweight rating, but lifting the 6-12 month price target to $80 from $73, saying CAT's
current 11X 2008 EPS multiple remains attractive.

As for Pfizer Inc. (NYSE: PFE), Prudential downgraded PFE to Neutral Weight from Overweight. Analyst Tim Anderson says that indeed PFE may be at the bottom, but he can't see clearly what would be the catalysts that would lift the stock despite organizational plans announced.
As revenue stream is eroded by generic competition, the analyst says Pfizer has two options: The first is to split up the company, which probably would not happen, the second is another acquisition of a company with phase III pipeline products.