Bank of America reiterates its Buy rating on industrial conglomerate Eaton with a $490 price target and raises the valuation multiple to 25 times expected 2027 EV/EBITDA, from 24 times, against the backdrop of improved visibility in data centers.
Demand in Electrical is expected to remain strong, supported by data centers, the power grid and pricing.
The forecast for organic growth in the third quarter is raised to 16 percent from 14.8 percent, above consensus at 14.3 percent.
The forecast for 2027 earnings per share is raised to $15.90 from $14.92, compared with consensus at $15.95.
