From Barchart: 2025-01-03 10:26:00

Eaton Corporation (NYSE:ETN) shares rose 2% after RBC Capital analysts raised the price target to $392, citing strategic portfolio adjustments and long-term growth potential in the electrical sector.

Recent divestitures of Lighting and Hydraulics businesses have positioned Eaton as a focused electrical solutions provider, poised to benefit from a growing “Electrical Supercycle” driven by megaprojects worth over $1 billion each.

Eaton’s backlog, three times larger than 2019 levels, has improved earnings visibility and mitigated cyclicality. Potential divestiture of its Vehicle joint venture could further optimize the portfolio and enhance growth and margins.

Analysts foresee a seamless CEO transition and believe Eaton is well-positioned to sustain operational momentum and capitalize on growth opportunities.



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