BofA Securities analyst Andrew Obin reiterated a Buy rating on Eaton Corporation (NYSE:ETN) with a price forecast of $410 following last week’s investor day.
The analyst writes that, at the event, the company issued 2024-2030 targets of organic growth of 6%-9% and adjusted EPS CAGR of over 12%, aligning with his expectations and investor forecasts.
Obin notes that while data centers contribute to organic growth (~19% of sales in 2025E; high-teens CAGR), growth is broad-based, with Commercial & Institutional (20% of sales), Utilities (11%), and Aerospace (15%) also expected to grow at high-single-digit rates.
Eaton expects 350-450bps margin expansion by 2030 (~28% segment margins), driven mainly by Electrical Global and Aerospace. The guidance appears reasonable with potential upside, per the analyst.
The analyst estimates organic growth to accelerate on the margin from 2025 in 2026/2027, and decelerate in the outer years of the company’s target.
The analyst witnessed investor pushback that the implied returns from Eaton’s >$1.5 billion in capacity additions are ‘too high.’
Meanwhile, Obin’s discussions with the company at the event suggest that the strong returns on incremental investments align with Eaton’s established framework.
The analyst raised estimates for 2026/2027 EPS to $13.43 (from $13.20) and $15.09 (from $14.35).
Price Action: ETN shares are up 2.00% at $299.49 at the last check Monday.
Read Next:
Photo via Shutterstock.
Date | Firm | Action | From | To |
---|---|---|---|---|
Mar 2022 | Deutsche Bank | Maintains | Buy | |
Mar 2022 | RBC Capital | Maintains | Sector Perform | |
Mar 2022 | Morgan Stanley | Maintains | Overweight |
View More Analyst Ratings for ETN
View the Latest Analyst Ratings
Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market.
Get the latest stock analysis from Benzinga?
This article Eaton's Growth Targets Look Achievable, Analyst Raises EPS Forecast For 2026 & 2027 originally appeared on Benzinga.com
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.