Eaton (NYSE:ETN) Upgraded to "Buy" at Melius Research

Key Points

• Melius Research upgraded Eaton's stock rating from "hold" to "buy" with a target price of $495.00, indicating a potential upside of 31.43% from its current price.
• Multiple analysts have positive outlooks on Eaton, with a consensus rating of "Moderate Buy" and an average price target of $390.68.
• Eaton's Q2 earnings surpassed expectations, reporting $2.95 EPS and $7.03 billion in revenue, an increase of 10.7% year-over-year.

Eaton (NYSE:ETN - Get Free Report) was upgraded by analysts at Melius Research from a "hold" rating to a "buy" rating in a report released on Monday, Marketbeat reports. The brokerage currently has a $495.00 price objective on the industrial products company's stock, up from their prior price objective of $412.00. Melius Research's price target would indicate a potential upside of 31.65% from the company's current price.

Several other research analysts have also commented on the stock. Citigroup increased their price target on shares of Eaton from $420.00 to $425.00 and gave the stock a "buy" rating in a research note on Wednesday, August 6th. Sanford C. Bernstein reaffirmed an "outperform" rating and set a $396.00 price objective on shares of Eaton in a report on Monday, July 14th. Rothschild Redb raised shares of Eaton to a "hold" rating in a report on Wednesday, August 20th. Daiwa Capital Markets assumed coverage on shares of Eaton in a report on Thursday, September 11th. They set an "outperform" rating and a $390.00 price objective for the company. Finally, Rothschild & Co Redburn assumed coverage on shares of Eaton in a report on Wednesday, August 20th. They set a "neutral" rating and a $336.00 price objective for the company. One analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $390.68.

Eaton Trading Up 2.8%

Eaton stock opened at $375.99 on Monday. The company has a quick ratio of 0.76, a current ratio of 1.24 and a debt-to-equity ratio of 0.47. Eaton has a 12 month low of $231.85 and a 12 month high of $399.56. The company's fifty day simple moving average is $362.48 and its 200-day simple moving average is $325.21. The stock has a market cap of $146.37 billion, a P/E ratio of 37.83, a P/E/G ratio of 2.61 and a beta of 1.17.

Eaton (NYSE:ETN - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The industrial products company reported $2.95 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.92 by $0.03. Eaton had a return on equity of 23.91% and a net margin of 15.11%.The firm had revenue of $7.03 billion during the quarter, compared to analysts' expectations of $6.93 billion. During the same quarter last year, the firm earned $2.73 earnings per share. The business's revenue for the quarter was up 10.7% on a year-over-year basis. Eaton has set its Q3 2025 guidance at 3.010-3.070 EPS. FY 2025 guidance at 11.970-12.170 EPS. As a group, sell-side analysts forecast that Eaton will post 12.02 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Olivier Leonetti sold 16,018 shares of the company's stock in a transaction dated Thursday, August 7th. The shares were sold at an average price of $358.39, for a total value of $5,740,691.02. Following the sale, the insider owned 630 shares of the company's stock, valued at $225,785.70. The trade was a 96.22% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 0.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Eaton

A number of hedge funds have recently made changes to their positions in ETN. Nuveen LLC acquired a new stake in shares of Eaton during the 1st quarter worth about $1,472,231,000. GAMMA Investing LLC increased its position in shares of Eaton by 27,281.9% during the 1st quarter. GAMMA Investing LLC now owns 3,593,321 shares of the industrial products company's stock worth $976,772,000 after purchasing an additional 3,580,198 shares in the last quarter. Ameriprise Financial Inc. increased its position in shares of Eaton by 85.4% during the 1st quarter. Ameriprise Financial Inc. now owns 3,629,464 shares of the industrial products company's stock worth $986,966,000 after purchasing an additional 1,672,175 shares in the last quarter. Fayez Sarofim & Co increased its position in shares of Eaton by 606.3% during the 1st quarter. Fayez Sarofim & Co now owns 1,025,903 shares of the industrial products company's stock worth $282,262,000 after purchasing an additional 880,656 shares in the last quarter. Finally, Invesco Ltd. increased its position in Eaton by 15.8% in the 1st quarter. Invesco Ltd. now owns 3,913,209 shares of the industrial products company's stock valued at $1,063,727,000 after acquiring an additional 533,774 shares in the last quarter. Institutional investors and hedge funds own 82.97% of the company's stock.

Eaton Company Profile

Eaton Corporation plc operates as a power management company worldwide. The company's Electrical Americas and Electrical Global segment provides electrical components, industrial components, power distribution and assemblies, residential products, single and three phase power quality and connectivity products, wiring devices, circuit protection products, utility power distribution products, power reliability equipment, and services, as well as hazardous duty electrical equipment, emergency lighting, fire detection, explosion-proof instrumentation, and structural support systems.