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Investing.com - Mizuho (NYSE:MFG) raised its price target on Hubbell (NYSE:HUBB) to $475.00 from $450.00 on Wednesday, while maintaining its previous rating on the electrical and electronic products manufacturer. According to InvestingPro data, Hubbell currently trades at a P/E ratio of 28.4x and appears to be trading above its Fair Value, with analyst targets ranging from $383 to $511.
The price target increase follows encouraging signs that original equipment manufacturer-driven de-stocking in Distribution has ended, with the end market showing mid-single-digit growth in the second quarter. Mizuho also noted that the Telecom (BCBA:TECO2m) segment appears to have bottomed out, while grid infrastructure orders increased by high-teens percentages. The company’s financial health remains robust, with InvestingPro data showing a strong Altman Z-Score of 8.23 and moderate debt levels.
Mizuho raised its 2025 earnings per share forecast for Hubbell to $17.80 from $17.52, and its 2026 projection to $19.00 from $18.88, citing better price/cost dynamics and increasing volumes. The firm expects pricing to accelerate in the second half of 2025, from approximately 2 points in the first half to around 4 points in the second half. The company has demonstrated strong profitability with a 34.2% gross margin and has maintained dividend payments for 55 consecutive years, as highlighted in InvestingPro’s comprehensive analysis.
While pressure continues in Hubbell’s Aclara business due to large project completions, Mizuho observed that this segment has flattened out sequentially and should return to growth in the fourth quarter. The pricing lag is expected to fade as Hubbell has fully transitioned to a first-in, first-out (FIFO) accounting methodology.
Mizuho also highlighted Hubbell’s robust merger and acquisition pipeline with ample capacity on the balance sheet, supporting the higher price target based on increased earnings potential.
In other recent news, Hubbell Inc. reported its second-quarter 2025 earnings, revealing a notable performance in earnings per share (EPS). The company achieved an adjusted EPS of $4.93, which exceeded analyst expectations of $4.43, representing an 11.29% surprise. Despite this positive EPS result, Hubbell’s revenue fell slightly short of forecasts, coming in at $1.48 billion compared to the anticipated $1.51 billion. In light of these results, Bernstein has raised its price target for Hubbell to $511 from $446 while maintaining an Outperform rating. The increase in the price target reflects confidence in Hubbell’s strong earnings outlook. Bernstein’s analysis highlights a 12% beat in EPS compared to Wall Street expectations, even after excluding certain transition factors. These developments provide investors with a comprehensive view of Hubbell’s recent financial performance and analyst perspectives.
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