'Fast Money' Traders Discuss Wells Fargo's Upgrade Of Caterpillar

On Friday, Wells Fargo upgraded Caterpillar Inc. (NYSE: CAT) to Overweight and increased its price target to $220 and CNBC "Fast Money" traders shared with the audience their thoughts about the call.

Steve Grasso likes the call. He sees it as the re-opening trade and the rotation from growth to value. Besides Caterpillar, he also likes Olin Corporation (NYSE: OLN), Westrock Co (NYSE: WRK) and Trinseo S.A. (NYSE: TSE). He thinks Olin, Westrock and Trinseo are going to double or triple.

Even though Caterpillar's price-to-earnings level seems a little bit rich, it makes a lot of sense for Pete Najarian that there is more upside for the stock. Caterpillar's current P/E is around 22 and Najarian would consider selling if it reaches a multiple of 30.

Bonawyn Eison thinks the call is interesting. It seems to him that the oil and gas sector and the construction sector are bottoming. He likes the call much more than some of the upgrades in the energy sector or some of the other sectors that have outperformed.