Hubbell initiated with a Hold at Deutsche Bank

Deutsche Bank analyst Nicole DeBlase initiated coverage of Hubbell (HUBB) with a Hold rating and $427 price target. The medium-term growth prospects for the electrical products and systems provider sub-sector “remain very robust,” with mid- to high-single digit growth achievable for the foreseeable future, the analyst tells investors in a research note. However, the firm says industry margins could be nearing peak levels following several years of strong price/cost tailwinds, and valuations look broadly expensive relative to peers, with the expected of nVent (NVT).