Caterpillar stock sinks as Baird downgrades it to Neutral. Here’s why the firm turned bearish on CAT shares today.
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The brokerage stated that growing opposition to data centre construction could weigh on demand for construction equipment and compress Caterpillar's valuation.
Baird analyst Mig Dobre bumped the shares to Hold from Buy. His price target dropped by $300, to $900 each.
Investing.com -- Baird downgraded Caterpillar to Neutral from Outperform and cut its price target to $900 from $1,200, arguing that mounting U.S. state and local regulations targeting data center development could slow equipment demand from 2027 onward, even as the company's near-term order book remains strong.
Caterpillar's strong order and backlog growth are likely to slow in 2027 and 2028, Baird projected on Wednesday, highlighting the recent New York data center moratorium as an example of growing state and local regulatory pushback. CAT stock dragged the Dow Jones into the red before Wednesday's open, as S&P 500 futures pointed higher. Baird downgraded CAT to neutral from outperform, cutting its price target to 900 from 1,200, according to The Fly investment news site.
Baird analyst Mig Dobre bumped the shares to Hold from Buy. His price target dropped by $300, to $900 each.
Each name will be familiar to most investors.
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