Analyst Christopher Snyder from Morgan Stanley maintained a Buy rating on Eaton (ETN – Research Report) and keeping the price target at $385.00.
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Christopher Snyder has given his Buy rating due to a combination of factors that highlight Eaton’s strong position and growth potential. The company is benefiting from high single-digit (HSD) organic growth and, despite trading at a discount compared to its peers, is well-positioned to sustain this growth beyond 2025. This is largely driven by the inflecting industrial mega-themes and a broad set of secular drivers within the US industrial sector, which could potentially enhance Eaton’s estimates and valuation over time.
Key growth drivers include the ongoing US reshoring trend, where Eaton has significant opportunities in facility construction, factory equipment, and utility infrastructure. The company has only tapped into a small portion of the market potential, suggesting further growth as new projects are announced. Additionally, Eaton’s data center segment has shown substantial momentum with orders significantly outpacing sales growth, indicating continued upside potential. The Electrical Americas segment, excluding data centers, also demonstrated robust organic growth, underscoring the company’s diverse growth avenues.