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UBS has downgraded Eaton Corporation from Buy to Neutral, lowering its price target from $440 to $360 due to limited short-term upside and expectations that 2026 guidance will fall below consensus. Despite Eaton's strong position in the AI supply chain, the firm notes that increased capacity may hinder margin expansion, potentially putting Eaton at a disadvantage compared to competitors. Eaton's recent Q3 2025 results showed an adjusted EPS of $3.07, slightly above forecasts, but revenues of $7 billion fell short of expectations.