Bucyrus (Nasdaq:BUCY) Downgraded by Almost Everybody After Caterpillar (NYSE:CAT) Acquisition

It seems almost everybody joined in the downgrading of Bucyrus Intl (Nasdaq:BUCY) a day after the news Caterpillar (NYSE:CAT) had acquired the mining equipment manufacturer, including Morgan Stanley (NYSE:MS), who downgraded them from "Overweight" to "Equalweight."

Bucyrus soared 29 percent the day the offer was made known.

Barclays was one of the few who kept Bucyrus where they were at, maintaining an "Equalweight" on them.

"Caterpillar and Bucyrus Intl (Nasdaq:BUCY) announced yesterday that they have entered into an agreement under which CAT will acquire BUCY in a transaction valued at approximately $8.6 billion...We view the transaction as a strong endorsement of the strength and longevity of a mining cycle that we believe is in the early stages of a multi-year expansion...According to management, the acquisition will allow CAT to deliver synergistic opportunities that will noticeably translate into improved operating profit in 2013 and beyond. CAT expects to leverage its distribution strength to support growth and sales and to reduce material, engineering, and financing costs," Barclays said.

BB&T Capital also (NYSE:BBT) downgraded them from "Buy" to "Hold." At least seven others downgraded Bucyrus as well.

Bucyrus closed Tuesday at $89.24, falling $0.56, or 0.62 percent.