Eaton (NYSE:ETN) Now Covered by JPMorgan Chase & Co.

Key Points

• JPMorgan initiated coverage of Eaton with a neutral rating and a $395 price target, implying 11.48% upside from the prior close. Jefferies also initiated coverage with a neutral rating and the same target.
• Analyst sentiment overall is more positive: Eaton has a consensus “Moderate Buy” rating and an average price target of $476.86, with 19 analysts rating it Buy or Strong Buy.
• Eaton beat quarterly expectations, reporting adjusted EPS of $3.68 versus $3.54 estimated and revenue of $8.95 billion versus $8.53 billion; revenue rose 28% year over year.

Equities researchers at JPMorgan Chase & Co. started coverage on shares of Eaton (NYSE:ETN - Get Free Report) in a report issued on Wednesday, Benzinga reports. The firm set a "neutral" rating and a $395.00 price target on the industrial products company's stock. JPMorgan Chase & Co.'s price objective would indicate a potential upside of 11.48% from the company's previous close.

A number of other research analysts have also commented on the stock. Jefferies Financial Group began coverage on shares of Eaton in a research report on Wednesday. They set a "neutral" rating and a $395.00 price target for the company. Argus increased their price objective on Eaton from $475.00 to $528.00 and gave the stock a "buy" rating in a research report on Tuesday, August 18th. Deutsche Bank Aktiengesellschaft lifted their price objective on Eaton from $493.00 to $521.00 and gave the company a "buy" rating in a research note on Wednesday, September 30th. Rothschild & Co Redburn boosted their target price on Eaton from $386.00 to $403.00 and gave the stock a "neutral" rating in a research report on Wednesday, September 30th. Finally, Royal Bank Of Canada upped their target price on Eaton from $526.00 to $539.00 and gave the stock an "outperform" rating in a research note on Wednesday, November 4th. One research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $476.86.

Eaton Price Performance

ETN stock opened at $354.34 on Wednesday. The firm has a 50 day moving average of $403.30 and a 200-day moving average of $396.80. The company has a current ratio of 1.23, a quick ratio of 0.78 and a debt-to-equity ratio of 0.85. Eaton has a 12 month low of $311.92 and a 12 month high of $478.00. The firm has a market capitalization of $137.66 billion, a P/E ratio of 35.40, a price-to-earnings-growth ratio of 2.26 and a beta of 1.15.

Eaton (NYSE:ETN - Get Free Report) last posted its earnings results on Tuesday, November 3rd. The industrial products company reported $3.68 earnings per share for the quarter, topping analysts' consensus estimates of $3.54 by $0.14. Eaton had a net margin of 12.18% and a return on equity of 25.09%. The business had revenue of $8.95 billion for the quarter, compared to analyst estimates of $8.53 billion. During the same quarter in the prior year, the firm posted $3.07 EPS. Eaton's revenue was up 28.0% on a year-over-year basis. As a group, sell-side analysts predict that Eaton will post 13.78 earnings per share for the current fiscal year.

Insider Transactions at Eaton

In other news, Director Gerald Johnson purchased 130 shares of the company's stock in a transaction on Thursday, August 13th. The stock was purchased at an average price of $455.90 per share, with a total value of $59,267.00. Following the completion of the purchase, the director directly owned 1,829 shares in the company, valued at approximately $833,841.10. This trade represents a 7.65% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 0.10% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Eaton

A number of large investors have recently modified their holdings of the company. Private Wealth Asset Management LLC boosted its stake in shares of Eaton by 38.7% in the 3rd quarter. Private Wealth Asset Management LLC now owns 8,770 shares of the industrial products company's stock valued at $3,769,000 after purchasing an additional 2,445 shares in the last quarter. Greenline Wealth Management LLC raised its position in Eaton by 18.7% in the 3rd quarter. Greenline Wealth Management LLC now owns 1,248 shares of the industrial products company's stock worth $536,000 after purchasing an additional 197 shares during the period. Westpac Banking Corp raised its position in Eaton by 9.5% in the 3rd quarter. Westpac Banking Corp now owns 346 shares of the industrial products company's stock worth $149,000 after purchasing an additional 30 shares during the period. Private Advisor Group LLC lifted its stake in Eaton by 32.1% in the third quarter. Private Advisor Group LLC now owns 58,797 shares of the industrial products company's stock worth $25,266,000 after purchasing an additional 14,271 shares during the last quarter. Finally, Hartford Funds Management Co LLC lifted its stake in Eaton by 4.0% in the third quarter. Hartford Funds Management Co LLC now owns 4,794 shares of the industrial products company's stock worth $2,061,000 after purchasing an additional 184 shares during the last quarter. 82.97% of the stock is owned by hedge funds and other institutional investors.

About Eaton

Eaton is a global power management company that designs and manufactures products and services intended to help customers manage electrical, hydraulic and mechanical power. Founded in 1911, the company serves customers across a range of industries, including utilities, commercial buildings, data centers, aerospace and transportation. Its offerings include electrical distribution and circuit protection equipment, power quality and backup systems, and power management software and services. Eaton also makes aerospace components and systems, as well as products for vehicle powertrains and related applications.

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