Caterpillar (CAT) shares dip Monday morning after Morgan Stanley's analyst team downgraded the stock to Underweight and cut their price target to $332 per share. The construction and agricultural machinery maker has seen its stock rise by 34% year-to-date.

Catalysts co-hosts Seana Smith and Brad Smith take a closer look at the story and analyst note, which points to pressure stemming from competition within the space.

To watch more expert insights and analysis on the latest market action, check out more Catalysts here.

This post was written by Luke Carberry Mogan.