Hubbell initiated with an Outperform at Bernstein

Bernstein initiated coverage of Hubbell (HUBB) with an Outperform rating and $535 price target as part of a broader research note launching coverage on select names in low/medium voltage electrical equipment sector. Electricity demand is entering an era of secular growth with the world changing the way energy flows, and the infrastructure build-out to support these megatrends is in its early stages, the analyst tells investors in a research note. Bernstein adds that Hubbell’s “exposure is attractive,” with the company seen as an “electrical pure play” generating 80% of sales from the 4 mega themes – 55% grid, 20% reshoring, 3% DC, and 2% renewables. The firm also contends that Hubbell’s revenue is likely to grow faster in a “positive load growth world.”