Despite Caterpillar ‘s strong quarterly results, Deutsche Bank says the potential upside for the stock is nearing its top. Analyst Nicole DeBlase downgraded shares of the industrial stock to a hold from a buy rating even after it topped analysts’ expectations in its recent quarterly report. She said in a note to clients Thursday that the stock may struggle to offer above-average returns in a global recession, especially after its recent stock performance. “Nothing we learned today has changed our cross-cycle valuation framework, and so although we did raise our PT by 13% to $221, there is simply not enough upside potential left vs. the current stock price to maintain a Buy rating,” she wrote. “We also feel that in many ways, recommending CAT after the recent move in the stock is playing with fire.” To be sure, the bank expects good earnings per share momentum ahead for the stock as revenues bounce back. Still, the fresh price target reflects a mere 4% upside from Thursday’s close following the stock’s outperformance and that’s too small of a move to support the bank’s previous buy rating, DeBlase said. Caterpillar shares have outperformed the market this year, with shares up 2.6%. As of Thursday’s close, the stock is set to finish October 29% higher and cap off the week with an 11.5% gain. Shares dipped 1% in premarket trading Friday. — CNBC’s Michael Bloom contributed reporting