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Wednesday's Top Upgrades (and Downgrades)

Rich Smith
March 20, 2013

This series, brought to you by Yahoo! Finance, looks at which upgrades and downgrades make sense, and which ones investors should act on. Today, our headlines include downgrades for tech stalwarts Adobe (NASDAQ: ADBE) and Symantec (NASDAQ: SYMC). But it's not all bad news, so why don't we start out with a few words on why one analyst thinks ...

This company is the Cat's meow
Wednesday opened happily for shareholders of mining and construction equipment maker Caterpillar (NYSE: CAT). Predicting that the company is capable of earning $10 a share annually by 2014, analyst Standpoint Research initiated Cat-coverage with a buy rating and a $105 share-price target. And while Standpoint admits there are "concerns regarding China and inventory levels," the analyst notes that with Cat's share price off 24% from its recent high, these worries are "already reflected in the share price."

Be that as it may, here's one worry that isn't reflected: free cash flow.

Even if Caterpillar does manage to "earn" $10 a share next year, you see, there's a big quest