Bank of America Securities analyst Andrew Obin has reiterated their bullish stance on ETN stock, giving a Buy rating on March 6.
Andrew Obin has given his Buy rating due to a combination of factors including Eaton’s upcoming investor day, where the company is expected to announce new long-term targets. The stock has seen a significant de-rating, trading at a lower multiple compared to its peak valuation, which presents an opportunity for investors as expectations for the event are generally positive or neutral. The incoming CEO, Paolo Ruiz, is anticipated to provide updates on growth targets, with potential increases in revenue growth guidance and sustained EPS growth.
Additionally, Eaton’s capacity additions, particularly in North America, are expected to drive organic growth in the Electrical Americas segment. The company is strategically expanding its capacity to meet demand, which is supported by a strong order book. This prudent approach, along with the potential for margin improvement in key markets like utility and datacenter, supports the expectation of continued earnings growth, making the stock an attractive buy.
Obin covers the Industrials sector, focusing on stocks such as 3M, Ametek, and Eaton. According to TipRanks, Obin has an average return of 10.8% and a 56.40% success rate on recommended stocks.
In another report released on March 6, Argus Research also maintained a Buy rating on the stock with a $350.00 price target.