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. The brokerage said the investment case is shifting as governments increasingly impose restrictions on new data center construction, citing New York's moratorium as the most prominent example of a broader trend. However, it warned that investors are likely to shift their focus toward a potential slowdown in orders during 2027 and 2028 as equipment supply expands while data center investment growth moderates. It said policy has increasingly shifted from attracting data center investment through incentives to imposing restrictions, taxes and additional regulatory oversight. Related articlesBaird downgrades Caterpillar to Neutral on rising data center regulatory risksThese 2 stocks are best positioned to benefit from higher uranium prices: analystNvidia's new Alpamayo project: What it means for Tesla?