KeyBanc raises nVent Electric stock price target to $78 from $72

On Tuesday, KeyBanc analysts raised the price target for nVent Electric (NYSE:NVT) stock to $78 from $72, maintaining an Overweight rating. The decision follows meetings where analysts were impressed by the company’s building momentum, particularly in its Data Solutions business. According to InvestingPro data, the stock currently trades at $64.64, with analyst targets ranging from $62 to $81, suggesting potential upside.

The analysts noted the strength of nVent Electric’s portfolio, driven by robust trends in the Data Center sector. With a market capitalization of $10.6 billion and a robust financial health score rated as "GOOD" by InvestingPro, the company is expected to benefit from recent acquisitions and capital allocation opportunities, which are anticipated to enhance its growth prospects.

nVent Electric’s strategy focuses on expanding its Data Solutions business by introducing new products and leveraging existing ones, such as Liquid-Cooling sales. The company aims to achieve organic growth of 5-7% in 2025, with sequential improvements expected throughout the year. Recent performance shows promising signs, with revenue growth of 15.9% in the last twelve months and a healthy gross profit margin of 40%.

Analysts also highlighted the potential synergies from nVent Electric’s recent acquisitions of Avail EPG and Trachte. These deals are expected to enhance customer relationships and improve margins through the application of LEAN principles.

With Data Center operations now accounting for approximately 20% of sales after recent divestitures and acquisitions, nVent Electric is poised to improve its long-term growth profile. The analysts believe this structural improvement will become more evident throughout 2025 and into 2026.

In other recent news, nVent Electric reported first-quarter earnings that exceeded analyst expectations, with adjusted earnings per share reaching $0.67, surpassing the consensus of $0.65. Revenue for the quarter rose by 11% to $809 million, beating estimates of $795 million. The company has raised its full-year 2025 outlook, now anticipating reported sales growth of 19-21% and organic growth of 5-7%, an increase from the prior guidance. nVent also updated its adjusted EPS forecast to a range of $3.03 to $3.13, indicating growth of 22-26%. In addition to financial performance, nVent completed the sale of its Thermal Management business and acquired the Electrical Products Group of Avail Infrastructure Solutions as part of its portfolio transformation strategy. The company held its 2025 Annual General Meeting, where shareholders approved several key proposals, including the election of director nominees and the reappointment of Deloitte & Touche LLP as the independent auditor. Shareholders also authorized the board to allot and issue new shares under Irish law, providing flexibility in capital-raising efforts. These developments reflect nVent’s strategic direction and commitment to growth.

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