Morgan Stanley Raises Eaton (NYSE:ETN) Price Target to $425.00

Key Points

• Morgan Stanley has raised Eaton's price target from $375.00 to $425.00, indicating an expected upside of 18.90% from its previous close.
• Citigroup and KeyCorp also recently increased their price targets for Eaton, highlighting strong analyst support with a consensus rating of "Moderate Buy".
• Eaton reported earnings of $2.95 per share for the last quarter, surpassing the expected $2.92, and experienced a revenue increase of 10.7% year-over-year.

Eaton (NYSE:ETN - Get Free Report) had its price objective increased by equities research analysts at Morgan Stanley from $375.00 to $425.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The brokerage currently has an "overweight" rating on the industrial products company's stock. Morgan Stanley's price objective points to a potential upside of 18.90% from the company's previous close.

Other analysts also recently issued reports about the stock. Citigroup increased their price target on shares of Eaton from $351.00 to $420.00 and gave the company a "buy" rating in a report on Monday, July 14th. Barclays increased their target price on shares of Eaton from $323.00 to $340.00 and gave the company an "equal weight" rating in a research note on Wednesday, July 9th. Sanford C. Bernstein restated an "outperform" rating and set a $396.00 price target on shares of Eaton in a research note on Monday, July 14th. BNP Paribas Exane assumed coverage on Eaton in a research report on Thursday, May 15th. They issued an "outperform" rating and a $380.00 price objective for the company. Finally, KeyCorp lifted their price objective on Eaton from $355.00 to $410.00 and gave the stock an "overweight" rating in a report on Tuesday, July 15th. Seven analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $380.53.

Eaton Price Performance

NYSE ETN opened at $357.43 on Wednesday. The company has a quick ratio of 0.84, a current ratio of 1.31 and a debt-to-equity ratio of 0.41. The company has a 50 day moving average price of $352.77 and a two-hundred day moving average price of $317.96. The stock has a market capitalization of $139.86 billion, a PE ratio of 36.07, a price-to-earnings-growth ratio of 2.90 and a beta of 1.18. Eaton has a 12-month low of $231.85 and a 12-month high of $399.56.

Eaton (NYSE:ETN - Get Free Report) last issued its quarterly earnings results on Tuesday, August 5th. The industrial products company reported $2.95 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.92 by $0.03. The company had revenue of $7.03 billion for the quarter, compared to the consensus estimate of $6.93 billion. Eaton had a return on equity of 23.41% and a net margin of 15.55%. The firm's revenue was up 10.7% compared to the same quarter last year. During the same period last year, the business posted $2.73 earnings per share. As a group, equities analysts predict that Eaton will post 12.02 earnings per share for the current fiscal year.

Insider Activity

In related news, insider Craig Arnold sold 103,486 shares of the company's stock in a transaction dated Monday, May 12th. The stock was sold at an average price of $322.75, for a total value of $33,400,106.50. Following the completion of the sale, the insider owned 490,208 shares in the company, valued at approximately $158,214,632. This represents a 17.43% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. 0.30% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Eaton

Several institutional investors have recently modified their holdings of ETN. First Horizon Advisors Inc. raised its position in shares of Eaton by 2.0% in the 2nd quarter. First Horizon Advisors Inc. now owns 4,188 shares of the industrial products company's stock valued at $1,495,000 after acquiring an additional 84 shares during the period. Crestwood Advisors Group LLC raised its holdings in Eaton by 0.6% in the second quarter. Crestwood Advisors Group LLC now owns 15,165 shares of the industrial products company's stock worth $5,414,000 after purchasing an additional 87 shares during the period. NewSquare Capital LLC boosted its position in shares of Eaton by 117.7% during the second quarter. NewSquare Capital LLC now owns 246 shares of the industrial products company's stock worth $88,000 after purchasing an additional 133 shares in the last quarter. MeadowBrook Investment Advisors LLC grew its holdings in shares of Eaton by 321.6% in the 2nd quarter. MeadowBrook Investment Advisors LLC now owns 2,150 shares of the industrial products company's stock valued at $768,000 after buying an additional 1,640 shares during the period. Finally, Arkadios Wealth Advisors increased its position in shares of Eaton by 23.8% in the 2nd quarter. Arkadios Wealth Advisors now owns 4,827 shares of the industrial products company's stock valued at $1,723,000 after buying an additional 928 shares in the last quarter. 82.97% of the stock is currently owned by institutional investors and hedge funds.

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.

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