Deutsche Bank downgraded Caterpillar (CAT) to Hold from Buy, saying that a mining recovery is already anticipated by investors while the outlook for the company's energy business has become less certain.

MINING RECOVERY REFLECTED: The recovery in Caterpillar's mining aftermarket business is already widely expected by investors and reflected in the stock, wrote Deutsche Bank analyst Nicole DeBlase. Moreover, after rising significantly, analysts' consensus estimate now calls for Caterpillar's earnings per share to rise at a 23% compound annual growth rate, DeBlase reported. DeBlase noted that the consensus forecast is now in-line with her own outlook.

ENERGY WEAKNESS: Previously, DeBlase had expected Caterpillar's oil and gas unit to enable the company's overall EPS to beat expectations, she wrote. However, the recent downturn in energy prices has made her less sure of that view, she stated.

LAST 'BEAT AND RAISE' IN 2017: DeBlase believes that Q2 will be the "last significant beat and raise" report that Caterpillar will deliver in 2017. DeBlase lowered her price target on the shares to $106 from $121.

PRICE ACTION: In morning trading, Caterpillar was fractionally lower at $103.48.