Wall Street gave a mixed reaction to 's (NYSE: CAT) latest earnings report, and it's about as nuanced as you might expect from a highly cyclical stock. For example, Stifel raised its price target to $350 from $293 previously but lowered the rating on the stock from "buy" to "hold." Meanwhile, TD Cowen raised its price target to $340 from $338 and retained a "buy" rating.

The bull-and-bear debate over the stock continues. As mentioned, Wall Street analysts differ significantly on what to expect from Caterpillar, and a large part of that debate boils down to its end-market outlook.

The chart demonstrates that Caterpillar's revenue and profit margin are highly cyclical. If revenue grows more than expected, investors will start pricing in bumper profit growth, and vice versa.

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Source Fool.com