Bernstein reiterates Outperform rating on Hubbell stock, citing achievable growth

Published 14/10/2025, 11:18
Bernstein reiterates Outperform rating on Hubbell stock, citing achievable growth

Investing.com - Bernstein SocGen Group has reiterated an Outperform rating and $511.00 price target on Hubbell (NYSE:HUBB) stock, currently trading at $418.72, expressing confidence that the company will achieve its second-half growth targets despite market skepticism. According to InvestingPro data, analyst targets range from $383 to $511, with the stock currently showing strong financial health scores.

The research firm noted that Hubbell shares have underperformed electrical peers by 10% since second-quarter earnings reports, reflecting investor concerns about the company’s projected growth acceleration from 6% in the first half to 10% in the second half of the year. Despite recent underperformance, the company maintains robust fundamentals with a 34.8% gross profit margin and healthy return on equity of 25%.

Bernstein identified several factors supporting its optimistic outlook, including an expected pricing increase from 1% to 4-5% as tariff-driven pricing takes effect, and backend-loaded grid infrastructure growth that should materialize, particularly in distribution.

The firm also highlighted that Hubbell’s grid automation segment, specifically Aclara, appears to have bottomed out and will face flat year-over-year comparisons in the second half, while early signs of accelerating non-residential activity should benefit the company’s HES business.

Bernstein’s analysis aligns with consensus estimates for Hubbell’s third quarter but projects fourth-quarter results approximately 3% above street expectations, suggesting a strong exit rate heading into 2026. The company has demonstrated consistent shareholder returns, maintaining dividend payments for 55 consecutive years with 17 years of consecutive increases. For deeper insights into Hubbell’s financial health and growth prospects, including 8 additional exclusive ProTips, check out the comprehensive research report available on InvestingPro.

In other recent news, Hubbell Incorporated has completed its acquisition of DMC Power for $600 million, financed through a new unsecured term loan facility and commercial paper issuances. This acquisition, initially set at $825 million, involves DMC Power’s connector technology systems for high voltage power infrastructure. Additionally, Hubbell announced that Chief Financial Officer Bill Sperry will retire at the end of 2025, with Joseph Capozzoli named as his successor, effective January 1, 2026.

Furthermore, Mizuho has raised its price target for Hubbell to $475, citing an improved outlook. This adjustment comes as the original equipment manufacturer-driven de-stocking in the Distribution segment appears to have concluded, with mid-single-digit growth observed in the second quarter. Mizuho also highlighted that the Telecom segment seems to have stabilized, and grid infrastructure orders have increased by high-teens percentages. These developments reflect Hubbell’s strategic moves and market conditions impacting its financial outlook.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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