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Investing.com - Bernstein reaffirmed its Outperform rating and $414.00 price target on Eaton Corporation (NYSE:ETN) on Tuesday. According to InvestingPro data, analyst targets for the electrical equipment manufacturer range from $288 to $495, with the stock currently trading at $375.37.
The research firm noted that while no strong catalyst exists for the electrical equipment manufacturer in the near term, orders have been appropriately de-risked heading into quarterly results. InvestingPro analysis indicates the company maintains a "GOOD" financial health score, with strong profitability metrics and moderate debt levels.
Bernstein expects Eaton’s third and fourth quarter earnings to align with market expectations, with investor focus likely to center on order rates. The firm believes an order book ratio above 1.1x would satisfy market concerns, despite Eaton management’s cautious commentary leading into results.
The analysis anticipates Eaton will provide preliminary organic growth guidance of approximately 8% year-over-year for 2026, exceeding the 6-8% range the company guided toward at the same point last year.
Bernstein projects that factoring in capacity additions, restructuring benefits, and improved margins from lower absorption and corporate expenses could lead analysts to raise their 2026 estimates for Eaton by approximately 2%.
In other recent news, Eaton has completed a $100 million expansion of its manufacturing facility in Nacogdoches, Texas, significantly increasing its production capacity for voltage regulators and three-phase transformers. This expansion added 200,000 square feet to the existing facility, and Oncor will receive the first shipment from the new production lines. Additionally, Eaton has appointed Kaled Awada as the new executive vice president and chief human resources officer, who will oversee the company’s global talent strategy and report directly to CEO Paulo Ruiz. In another development, Eaton has been selected by Bell Textron Inc. to design and develop the aerial refueling retractable probe for the U.S. Army’s MV-75 Future Long Range Assault Aircraft. Eaton is also collaborating with Autodesk to enhance building lifecycle management, integrating their technologies to optimize electrical system performance in commercial buildings and data centers. Furthermore, Melius Research has upgraded Eaton’s stock rating from Hold to Buy, citing a reacceleration in AI capital expenditures as a key factor for this change.
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