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Investing.com - BNP Paribas Exane reiterated its Outperform rating on Eaton (NYSE:ETN) with a price target of $413.00 on Friday. The target represents potential upside from the current price of $362.92, with analyst targets ranging from $288 to $440.
The research firm cited Oracle’s recent backlog inflection as an indicator of significant growth potential ahead for Eaton . BNP Paribas Exane expects Eaton to experience a similar backlog inflection over the next year as customer capital expenditure shifts toward equipment critical for powering AI data centers. The company, which InvestingPro data shows has achieved 7.66% revenue growth in the last twelve months, maintains a strong financial health score of GOOD.
Eaton has underperformed year-to-date, rising approximately 9% compared to the S&P 500’s 12% gain. The firm anticipates Eaton’s valuation will begin to reflect order growth potential in coming quarters.
BNP Paribas Exane maintains its data center revenue compound annual growth rate projection of over 20% through 2030 for Eaton. The firm’s bull case scenario of 35% growth has been strengthened by Oracle’s recent performance.
Eaton currently trades at a price-to-earnings ratio of 26x, representing a slight premium to peers at 24.5x. The research firm expects this multiple to increase as AI-workload data center orders accelerate and backlog inflects.
In other recent news, Eaton Corporation reported its Q2 2025 earnings, exceeding analyst expectations with an adjusted earnings per share (EPS) of $2.95, compared to the forecasted $2.93. The company’s revenue also set a record at $7.03 billion, surpassing the anticipated $6.91 billion. Eaton has raised its full-year EPS guidance, indicating optimism about future growth. Bernstein has increased its price target for Eaton to $414, maintaining an Outperform rating, based on a broadening growth outlook beyond data centers. Daiwa Securities initiated coverage with an Outperform rating and a $390 price target, highlighting Eaton’s investments in data centers and electricity grid infrastructure as growth drivers. KeyBanc reiterated its Overweight rating and maintained a $410 price target after discussions with Eaton’s financial leadership. Meanwhile, Rothschild Redburn started coverage with a Neutral rating and a $336 price target, noting Eaton’s strategic focus on power management and major trends like electrification and energy efficiency. These developments reflect diverse perspectives on Eaton’s potential in expanding markets.
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